SNAP (3D) – Potential Reversal Setup with Bullish Divergences

hi Traders

Let's have a look at SNAP stock.
It gets a lot of hate recently, but chart looks good for a bullish reversal.

📊 Chart Overview

Current Price: $7.31

EMAs in play: 20 EMA ($8.37), 50 EMA ($9.48), 100 EMA ($11.35), 200 EMA ($15.05)

Volume: ~366.8M

🔎 Technical Analysis

Falling Wedge Structure

Price has been making lower lows but within a narrowing falling wedge pattern.

The wedge is approaching the support trendline, suggesting potential for a breakout.

Bullish Divergences (RSI)

RSI has formed higher lows, while price made lower lows.

This is a classic bullish divergence, hinting at weakening bearish momentum.

Volume Pickup

Recent green volume spikes suggest accumulation near the bottom support zone.

🎯 Target Zone

First target: $9.50 (50 EMA resistance).

Extended target: $11.35 – $12.00 (100 EMA + strong supply zone).

⚠️ Risk Management

Stop-loss: Below $6.80 (recent swing low, wedge support).

Risk/Reward Ratio: ~1:2.5 if aiming for $11–12 zone.
I personally won't sell below 11.

📈 Trading Idea

SNAP is showing signs of a potential bullish reversal on the 3-day timeframe. The combination of a falling wedge, bullish RSI divergence, and increasing volume supports a bounce toward higher resistance zones. A sustained break above the 20 & 50 EMAs could trigger momentum toward the $11–12 target zone.