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SNAP to Riches? Could This Breakout Be a Money-Making Moment?

Snaps Inc. is an up-and-coming communications platform that has been making a strong case for itself amongst tech investors. Its growth has been nothing short of remarkable and its stock price has surged in anticipation. Recently, the Snaps stock price has “snapped” out above the Bollinger bands, providing investors with a potentially profitable opportunity. Bollinger bands are a system of tracking price movements within a specific upper and lower limit. It seeks to identify changes in market trends by providing an indication of volatility, momentum, and trading range. A ‘snap’ occurs when a stock’s price goes outside of the band’s range, which is what has recently happened with Snaps Inc. The news of Snaps’ stock price breaking out will undoubtedly have investors eagerly watching for a chance to capitalize on its success. In a purely technical analysis, these snaps often signify the end of a strongly trending move and the start of a correction. While it is typically wise to wait until after the correction to enter a long position, the timing of the snap could lead to an enviable opportunity if investors act quickly. Fundamental analyses, however, may be needed to really assess the potential of a profitable opportunity in Snaps Inc. stock. Its failed attempt to buy “Houseparty” and subsequent layoffs are likely to have a lasting impact on its growth. The competition from established rivals such as Facebook and Apple are also likely to have a significant role in the future of Snaps. Time will tell whether the ‘snap’ in Snaps Inc.’s stock will indeed be a profitable one. History has no shortage of examples of stocks that went up in a brilliant blaze of glory, only to crash and burn soon after. As always, investors should do their due diligence when considering a potential investment and should be aware of the risks and rewards associated with the Snaps snap.