The move comes on news that the company will launch an in-app video feature similar to TikTok, called Spotlight.
Given how quickly TikTok caught on in the U.S., investors hope that the new features will help increase engagement, something that Snap has already proved it's good at doing.
The stock has been rampaging its way higher on better-than-expected user growth and impressive quarterly growth, up 180% so far in 2020.
Let’s look at the charts to see just how far Snap may ultimately rally.
Snap is now working on its seventh day of gains in the last eight trading sessions.
The stock rallied hard on Friday, finishing higher by 4.75%. Closing at $44.29, shares were just shy of taking out the prior week’s high at $44.53.
However, that set the stage for this week, where Snap stock could give investors a two-times weekly-up rotation - where the stock closes above the respective high from each of the last two weeks - by clearing $44.53.
Of course, not only did Snap accomplish that feat with its gap-up open on Monday morning, but shares also made new all-time highs in the process.
From here, I would love to see Snap hold up above the prior high at $45.84. However, it really need to hold above that two-times weekly rotation trigger near $44.50.
If it can do that, it increases the odds that we will see more new highs in this name.
Above Monday’s new high at $47.27 and Snap stock could see $50 or higher. The 361.8% extension comes into play at $50.84, while the four-times range extension is just north of $55.
While it would need to maintain quite a bit of momentum to get there, keep in mind that this has been a very hot stock. Should the overall stock market hold up, Snap may not be done going higher.