Less than 3 months ago, Snowflake was left for dead.
The stock was one of the biggest names in software, and then software fell apart. Traders called it the SaaSpocalypse, the stretch where cloud-software stocks got torched on fears that AI would make them obsolete. Snowflake got hit as hard as any of them.
At its worst this spring, the stock was down more than 50% from where it traded a year earlier. Cut in half and written off by most of the people who once loved it.
Then something changed, and it is the reason this name is on my watchlist.
Let me back up and tell you what Snowflake does. It runs what it calls the AI Data Cloud. Big companies pour their data in, and Snowflake helps them store it, organize it, and now run AI on top of it.
When a business wants to put AI to work on its own data, this is one of the places that work happens.
That last part is what flipped the story. The company built a set of AI tools, and customers started using them fast. Late in May, Snowflake reported its first billion-dollar quarter, with revenue up 32% from a year ago, and raised its outlook for the rest of the year.
The market noticed in a hurry. The stock had its single best day ever on that report, ripping 36% higher, and it has kept climbing since. The company also signed a new $6 billion cloud deal and deepened its ties with the biggest names in AI.
So the left-for-dead software stock is now one of the loudest AI comeback stories on the board. That is the setup, and the chart backs it up.
Trend comes first, always. If the trend is wrong, nothing else matters.
SNOW went from a brutal downtrend into a sharp V-shaped recovery, and price is now back near 259, sitting up at the highs of that rebound. This is a stock that has flipped from falling knife to leader in a matter of weeks.
Pattern is second, and this is the part I love. The EMAs are stacked. The 8-day at 246, the 21-day at 234, and the 34-day at 221 are lined up in order, with price above all of them.
A moving average is just the average price over those days. When the fast one rides above the slow ones like this, everybody who bought recently is green and there is no wall of trapped sellers waiting overhead. The daily is stacked, and the weekly is squeezing right behind it.
Squeeze is third, and it is on. A squeeze is what happens when a stock coils tight, the range narrows, and the energy builds up like a spring being wound down.
The weekly squeeze is on, and that is the timeframe I care about most. A weekly squeeze takes longer to build, and when it finally fires, the move behind it tends to run further than anything on the daily.
Put it together and you have the whole picture. The trend flipped hard to the upside, the averages are stacked, and the weekly squeeze is loaded on a name with a real AI story pushing it.
The most bullish part is the story underneath the chart. A stock that was left for dead does not usually come back quietly. It comes back with buyers who missed it the first time and do not want to miss it again.
The comeback is real, the AI story is real, and now we let the chart do the talking.
If you want to see the trades I take when setups like this one fire, that is what Fast Cash is all about.