TopOptionAlert
$SNOW NOV20 325C · still actionable
Zone: $313.14 to $317.56
Invalidation: close under $309.80
Objectives: $335, then $355
The math: up 6.2% to the first objective and 12.6% to the second, against 1.8% risk on the invalidation, better than 7 to 1 to the second
Dear friend, think of this swing setup like a shop that had a rough few weeks on the main street and then saw customers walk back in on Monday. Snowflake fell about 14.5 percent in five sessions, then closed Monday at $315.35, up 2.8 percent, after buyers held the $309.80 low and pushed price to $320.43, and what that means is simple. The selling slowed at a floor you can plainly see, and overhead there is room toward $335 first and $355 next while the November calls give this idea time before earnings on December 2. If price closes under $309.80 that floor has given way and you step aside, plain and simple.
P.S. Watch $320.43 on Tuesday. It was the high on Monday, and a close over it would show buyers pressing, not just defending the low.
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