AI trading robot, known as Day Trader: High Volatility Stocks for Active Trading (TA&FA), has proven its mettle by delivering exceptional results. In the previous week, this cutting-edge trading bot achieved a remarkable gain of +4.27% while trading SNAP. This article will delve into the technical analysis behind the success of the robot's trading strategy, particularly focusing on the recent crossing of moving averages, as well as shed light on SNAP's recent earnings report.
The 10-day moving average for SNAP, a popular social media company, experienced a bullish crossover above the 50-day moving average on June 2, 2023. This occurrence indicates a positive shift in the stock's trend, which can be interpreted as a buy signal for traders. It is worth noting that in all 13 previous instances when the 10-day moving average crossed above the 50-day moving average, the stock continued its upward trajectory over the following month. Therefore, the odds of a sustained upward trend in SNAP are currently estimated at an impressive 90%.
Earnings Report Analysis:
On April 27, SNAP released its earnings report, which exceeded market expectations. The company reported earnings per share of 0 cents, surpassing the estimated -23 cents. This positive surprise reflects the resilience and profitability of SNAP's business operations. Currently, with 2.46 million shares outstanding, the company's market capitalization stands at 17.96 billion dollars. These figures highlight SNAP's strong market presence and its ability to generate substantial value for its shareholders.
The AI trading robot Day Trader: High Volatility Stocks for Active Trading (TA&FA) has demonstrated its effectiveness by delivering impressive gains while trading SNAP. Its success can be attributed to a combination of technical analysis indicators and fundamental factors, such as SNAP's recent earnings report. The crossing of moving averages, with the 10-day moving average surpassing the 50-day moving average, suggests a favorable buying opportunity, supported by a historical track record of continued upward movement. SNAP's positive earnings surprise and its market capitalization of 17.96 billion dollars indicate a strong financial position and market confidence in the company.
SNAP broke above its upper Bollinger Band on August 31, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options. The A.I.dvisor looked at 46 similar instances where the stock broke above the upper band. In of the 46 cases the stock fell afterwards. This puts the odds of success at .
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on SNAP as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for SNAP turned negative on September 15, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 48 similar instances when the indicator turned negative. In of the 48 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where SNAP declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
The Aroon Indicator for SNAP entered a downward trend on August 29, 2023. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where SNAP's RSI Oscillator exited the oversold zone, of 25 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 6 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where SNAP advanced for three days, in of 308 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. SNAP’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (5.831) is normal, around the industry mean (17.234). P/E Ratio (0.000) is within average values for comparable stocks, (41.446). Projected Growth (PEG Ratio) (5.636) is also within normal values, averaging (3.543). Dividend Yield (0.000) settles around the average of (0.025) among similar stocks. P/S Ratio (3.194) is also within normal values, averaging (8.690).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. SNAP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a developer of a text and photo based messaging application for mobile phones
A.I.dvisor indicates that over the last year, SNAP has been loosely correlated with PINS. These tickers have moved in lockstep 60% of the time. This A.I.-generated data suggests there is some statistical probability that if SNAP jumps, then PINS could also see price increases.