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A month ago, Snap (SNAP - Get Report)  was flirting with a breakout to new highs. Since then though, it's been on a bruising decline.

Shares have fallen from a high of $18.07 last month to a low of $13.42 this month, which came on Friday. From peak to trough, that's a more than 25% decline inside of a month.

While other social media stocks have not done great over the past month, they have certainly avoided the pain that Snap has absorbed. Shares of Facebook (FB - Get Report) and Twitter (TWTR - Get Report)  have declined 0.4% and 7.2% over the last 30 days, respectively.

That said, Snap stock is by far the bigger winner over the past year, rallying more than 110% in the last 12 months. That compares to a ~40% gain in Twitter and 23% advance in Facebook.

However, with Snap reporting earnings on Tuesday after the close of trading, many investors are unsure how to position ahead of the event. On the plus side for bulls shares aren't surging into the event, which could have set it up for a catastrophic letdown.

Let's look at the charts.

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Trading Snap Stock

Daily chart of Snap stock.
Daily chart of Snap stock.

The stock's fall has been discouraging for the bulls, there's little doubt about that. However, the decline was set to put Snap stock in a better position ahead of the report. That is until shares rallied 7.5% on Monday.

It's left investors stuck between a rock and hard place. Trading stocks ahead of earnings can be difficult enough without a 25% peak-to-trough decline and a 7.5% pre-earnings rebound.

For that reason, many investors will find it easier to leave Snap stock alone until the numbers are out. So what do traders need to see happen post-earnings?

On the downside, Snap needs to hold $13.24, which is the 61.8% retracement. Below that mark means Snap stock will have fallen below 2019 uptrend support (purple line), the October low at $13.42, and possible downtrend support (blue line).

Below the 61.8% retracement and Snap may test its 200-day moving average at $12.55 and potentially the 50% retracement all the way down at $11.66.

On the upside, bulls will want to see Snap stock clear $15.60. That will put it over the 50-day and 100-day moving averages, as well as the 78.6% retracement at $15.49. Over $15.60 and the September high just north of $18 is technically on the table.

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This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.