Stock Market Mentor

Is $SNOW about to melt up? – July 20, 2026

Scott McGregor
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Key Takeaways

  • Notable Relative Strength: Snowflake closed green and maintained its structure above the 21-day exponential period moving average, even as SPY and QQQ closed beneath their 50-day moving averages.

  • Key Breakout Level: The primary level to watch for a potential entry is a move through and daily close above $278.80 on volume.

  • Post-Earnings Context: After its earnings report, Snowflake gapped up, advanced for three days, and then pulled back, establishing potential selling resistance above $280.

  • Defined Invalidation Floor: The 21-day exponential period moving average serves as the key logical level for a protective stop loss.

Snowflake Shows Relative Strength Despite Market Volatility

When the broader market encounters turbulence, identifying individual stocks that can decouple from the downward trend is key for active traders. Right now, major indices are showing signs of weakness—both the S&P 500 (SPY) and the Nasdaq 100 (QQQ) have closed below their respective 50-day moving averages. However, Snowflake (SNW) is presenting a very different technical picture.

Defying the Broad Market Pullback

Rather than drifting lower alongside the major indices, Snowflake is displaying clear relative strength. During the broader pullback on Friday, Snowflake held firm and stayed above its 21-day exponential period moving average. Following that defense of support, the stock posted a green session, signaling that buyers are stepping in even while the broader market faces selling pressure.

If the general market stabilizes and stocks begin to rise, Snowflake appears well-positioned to “melt up” alongside a broader market recovery.

Mapping the Setup and Managing Risk

While the chart looks constructive, traders should remain patient and wait for proper confirmation rather than anticipating the move.

  • The Trigger: Look for a strong move through and a daily close above $278.80 accompanied by solid volume.

  • Overhead Resistance: Be aware of potential selling around the $280 level. Following its recent earnings report, the stock gapped up and ran for three days before pulling back, meaning overhead supply could come into play.

  • Risk Management: If the breakout triggers, a protective stop loss should be anchored around the 21-day exponential period moving average to keep risk clearly defined.