Watch These Snowflake Price Levels as Stock Pops After Strong Earnings

Snowflake (SNOW) posted fourth-quarter results and an annual product revenue outlook that sailed past Wall Street estimates, sending shares in the cloud-based data storage provider sharply higher on Thursday.

The company guided full-year fiscal 2026 revenue growth of 24% to $4.28 billion, comfortably surpassing analysts’ expectations, with the top line boosted by enterprise customers turning to Snowflake’s AI-powered cloud services to manage their data.

Separately on Wednesday, the company announced that it had expanded its partnership with Microsoft (MSFT) to integrate OpenAI’s models directly into its Cortex AI platform. Prior to today’s jump, Snowflake shares had lost nearly a third of their value over the past year, pressured by the departure of the company’s former CEO last February and increasing competition in cloud services.

The stock was up 9% at around $181 in early-afternoon trading Thursday.

Below, we break down the technicals on Snowflake’s chart and identify key post-earnings price levels worth watching out for.

Cup and Handle Pattern in Play

Snowflake shares carved out a cup and handle pattern between February last year and this month before encountering selling pressure near the formation’s top trendline last week.

The pullback into the company quarterly results has coincided with the relative strength index (RSI) falling to its lowest level since September last year, paving the way for today’s post-earnings rebound.

Let’s apply technical analysis to Snowflake’s chart to point out four important overhead area to watch, while also identifying a key support level worth monitoring during retracements.

Important Overhead Areas to Watch

Firstly, it’s worth monitoring how the price responds to the $190 level, a location on the chart where the shares may face resistance on a retest of the cup and handle pattern’s top trendline.

Buying above this level could see the shares climb to around $212. The shares may encounter selling pressure in this region near last year’s January peak and late February pullback low.

The next overhead area of interest lies at the $236 level. Investors who have bought the pre-earnings dip may look to lock in profits near the February 2024 twin peaks that preceded a sharp gap lower later that month.

To forecast an overhead area to watch using a measured move, investors can apply the measuring principle. When applying this technique, we calculate the depth of the cup and handle’s “cup” and add that amount to the pattern’s top trendline. 

For instance, we add $85 to $190, which projects an upside target of $275, an area about 65% above Wednesday’s closing price where investors may seek exit points amid a strong move higher.

Key Support Level to Monitor During Retracements

Finally, during retracements, investors should keep track of the $153 level. This location on the chart would likely attract significant buying interest near the low of the cup and handle pattern’s “handle.”

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As of the date this article was written, the author does not own any of the above securities.