Snap plunges 8.0% on Jefferies downgrade

Snap (SNAP.US) stock fell sharply on Thursday after the social media company was downgraded by Jefferies to hold from buy and lowered its price target to $10 from $12, citing weakness in the digital ads market. Analysts also pointed out that the company is facing intense competition and a worsening macroeconomic picture. 

Snap (SNAP.US) stock is down 80% this year and downward move accelerates today. Stock launched today's session with a bearish price gap below 61.8% Fibonacci retracement of the last upward wave. If sellers manage to uphold momentum, declines may deepen towards local support at $8.35 or October lows at $7.35. Only a break above the local downward trendline, would be the first sign that buyers may be taking control, however until this happens main sentiment remains bearish. Source: xStation5