Stock Analysis: Good Stocks to Invest in Right Now – Snowflake Inc (SNOW)
If you’re searching for good stocks to invest in right now, Snowflake Inc (SNOW) stands out as a strong contender. On Thursday, 17 October 2024, Snowflake closed at $119, presenting a solid opportunity for both swing traders and long-term investors. Let’s dive into the technical analysis and explore why Snowflake is one of the good stocks to invest in right now as we look ahead to 2025.
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1. Overview of Snowflake Inc (SNOW)
Snowflake is a cloud data platform company offering data storage, analytics, and cloud services to help businesses manage and analyze large amounts of data. With its innovative platform and strong market position, Snowflake has been a favorite among investors, making it one of the good stocks to invest in right now for those interested in tech and cloud computing.
2. Closing Price: 17 October 2024
On 17 October 2024, Snowflake Inc closed at $119. The stock has recently tested key support levels, and technical indicators suggest that a bullish reversal is on the horizon, positioning Snowflake as a great buy for short-term gains and long-term growth.
3. Weekly Time Frame Analysis
When analyzing Snowflake on the weekly time frame, it’s evident that the stock has been in a downtrend, forming lower lows (LL) and lower highs (LH). In August 2024, the stock tested a crucial demand zone around its June 2022 all-time swing low, which was near $112. This demand zone has held up as a strong level of support, and we expect the stock to bounce towards the upside from this area.
The stock has been trading within a descending channel, but the previous weekly candle broke through this channel, signaling the potential start of a bullish move. This breakout is one reason Snowflake is considered one of the good stocks to invest in right now.
4. Bullish Divergence and Moving Averages
The RSI (Relative Strength Index) on the daily time frame shows a bullish divergence, meaning that while the stock price was decreasing, the RSI was rising, indicating that downward momentum is weakening. This is a strong bullish signal.
Additionally, the stock has broken above the 50 EMA (Exponential Moving Average) on the daily chart and closed above it. This is another bullish indicator, as it suggests that buyers are gaining control and the stock could continue to rise. These technical factors reinforce why Snowflake is one of the good stocks to invest in right now.
5. Unmitigated Supply Zones: Upside Targets
Looking ahead, Snowflake has two key unmitigated supply zones that serve as potential upside targets:
- First supply zone at $140
- Second supply zone at $160
These supply zones represent resistance levels, but they also offer substantial upside potential. We expect Snowflake to test these levels in the coming weeks, giving investors significant opportunities for gains. This further solidifies Snowflake as one of the good stocks to invest in right now.
6. Critical Support Level: $106
While Snowflake shows strong bullish signals, it’s essential to monitor the $106 price level. If the stock breaks and closes below $106, the current bullish setup would be invalidated, and further downside could be expected. However, as long as the stock remains above this level, the bullish outlook remains intact.
Swing Trade Idea for Snowflake Inc (SNOW)
For swing traders looking for short-term opportunities, Snowflake presents a well-defined setup. Here’s a swing trade idea based on current technical analysis:
- Buy Entry Range: $118 – $111
- Stop Loss: $106
- Target 1: $133
- Target 2: $140
This trade setup provides a solid risk-to-reward ratio, with the stop-loss set just below the critical $106 support level. The first target of $133 and the second target of $140 are realistic based on the stock’s historical price action and key resistance zones.
7. Why Snowflake Inc is Among the Good Stocks to Invest in Right Now
Snowflake is one of the good stocks to invest in right now for several reasons:
- Strong Demand Zone: The stock has tested a key demand zone near $112, which has historically provided strong support.
- Bullish Breakout: The recent breakout from the descending channel signals a potential upward move.
- Bullish Divergence: The RSI showing bullish divergence suggests that the stock’s downward momentum is fading, which could lead to a price increase.
- Upside Potential: With targets at $140 and $160, Snowflake offers significant room for growth in the coming weeks.
These factors make Snowflake a compelling option for both short-term traders and long-term investors seeking good stocks to invest in right now.
8. Risk Management and Strategy
While Snowflake presents a strong bullish setup, risk management is crucial. Swing traders should adhere to the stop-loss at $106 to protect against potential downside if the stock fails to hold above this critical support level.
For long-term investors, keeping an eye on broader market trends and Snowflake’s performance relative to the tech sector is essential. As the stock approaches its upside targets, adjusting positions or taking partial profits can help lock in gains while minimizing risk.
9. Long-Term Investment Outlook
Snowflake operates in the rapidly growing cloud data platform sector, which is essential for businesses managing large volumes of data. As the demand for cloud services continues to rise, Snowflake is well-positioned for long-term growth. For investors looking for good stocks to invest in right now, Snowflake offers both value and growth potential.
With upside targets of $140 and $160, there is significant room for price appreciation in the coming months. Long-term investors can benefit from Snowflake’s innovative platform and its ability to capitalize on the growing demand for data solutions.
10. Conclusion: Snowflake Inc is a Strong Buy for Long-Term Investors
Snowflake Inc (SNOW) is one of the good stocks to invest in right now due to its strong technical setup, bullish divergence on the RSI, and breakout from the descending channel. With upside targets of $133 and $140, the stock presents a promising opportunity for both swing traders and long-term investors.
As long as the stock holds above the $106 level, the bullish outlook remains valid, and Snowflake could continue to perform well in the coming weeks. For those seeking a combination of short-term gains and long-term growth, Snowflake is one of the top good stocks to invest in right now.
FAQs
1. Is Snowflake Inc a good stock to invest in right now?
Yes, Snowflake Inc is considered one of the good stocks to invest in right now due to its strong demand zone support, bullish breakout, and growth potential in the cloud data sector.
2. What is the closing price of Snowflake Inc on 17 October 2024?
On 17 October 2024, Snowflake Inc closed at $119.
3. What are the upside targets for Snowflake Inc?
The upside targets for Snowflake Inc are $133 and $140, with additional resistance at the $140 supply zone.
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Note: Always remember: risk no more than 1% per trade.” Keep trailing your stop loss to secure bigger profits.
Please note this is only an opinion and not financial advice.
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