SNOW: Rounding Bottom detected on 10 Aug 2026

SNOW is forming a rounding bottom pattern with a structure score of 15.0 and a breakout score of 7.0, indicating textbook formation but modest breakout conviction. The stock is trading at $330.49, well above key resistance at $254.51 and near its 52-week high ($331.40), suggesting the rounding base is complete. Volume ratio of 1.22 confirms above-average interest, though the breakout score of 7.0 reflects hesitation at elevated levels. The overall score of 68.0 indicates a solid mid-tier setup. Price sits 179% above the 52-week low of $118.30, demonstrating a strong recovery structure.

Snowflake delivered strong momentum with product revenue of $1.23 billion, up 30% year-over-year, and remaining performance obligations totaling $9.77 billion, up 42% year-over-year in its most recent quarter. The company is making headlines with its innovative Cortex AI Gateway, driving optimism in the AI sector, with recent investor activity suggesting strong confidence while the stock has reached a four-year high amid positive market sentiment and analyst upgrades. Multiple analysts have upgraded their price targets for Snowflake, with Jefferies Financial Group raising it to $250 and Morgan Stanley setting a target of $262. The company will release its next earnings report on September 2, 2026. This pattern is forming in a bullish sector regime (0.83 score) with enterprise data and AI momentum providing fundamental support for higher valuations.

A successful breakout above resistance would target $344.81 (conservative measured move), representing a 4.3% upside from current levels. The rounding bottom pattern historically suggests a decisive move once key resistance breaks, with volume confirmation critical given the modest breakout score of 7.0—sustained volume above 5.1M would validate continuation. Win probability of 63.43% indicates better-than-coin-flip odds. Invalidation occurs at key support of $118.30, though this represents an extreme retest some 64% lower. The pattern suggests accumulation is complete, but the low breakout score flags that buyers may pause before committing to the next leg higher.

RSI at 80.74 signals severe overbought conditions, creating exhaustion risk on any pullback—historically problematic for sustained rallies from elevated levels. The most recent quarter showed Snowflake reported $0.319 EPS versus $0.39 expected by the market, indicating an earnings miss. Earnings on September 2, 2026, represent a near-term catalyst that could fracture the pattern if growth disappoints. Beta of 0.32 suggests the stock moves less than the market, but elevated 20-day volatility of 37% creates whipsaw risk. The stock's 114% gain over three months has pulled valuations extended—further upside requires sustained AI adoption narrative and customer expansion momentum. Any hint of slowdown in product revenue growth or NRR compression below 125% would trigger sharp reversals given current momentum-driven positioning.

We scan more than 6,000 NYSE and NASDAQ stocks every trading day and compare each detected pattern against a database of 370,000+ historical detections. Every setup is scored across three dimensions: Structure, Volume, and Breakout Readiness. Win probability is a calibrated estimate of how similar historical setups performed over the following 10 trading days. This is a swing trading tool built for multi-day holds. It is not built or tested for day trading.