I have never been a big supporter of Snap (SNAP - Get Report)  stock. The valuation has been absurd compared to peers like Twitter (TWTR - Get Report) and Facebook (FB - Get Report)  and the financials are unattractive as negative cash flow continues to bleed the company's coffers.

However, most stocks can only remains a "sell" for so long. Now that Snap stock finally has some wind in its sails, is it a name that investors need to consider on the long side?

There's a difference between investing in the fundamentals and trading the charts. We're doing the latter, and Snap is finally looking much better. Let's examine.

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Trading Snap Stock

15-month daily chart of Snap stock.
15-month daily chart of Snap stock.

Snap stock has been on an absolute tear, rising more than 100% from its December lows. Once it cleared $7 in February, it's been a nonstop flurry of buying. This gap-and-go has created a ton of bullish momentum in the stock. As long as Snap continues to digest these rallies and absent any horrendous news, the share price can continue to drift higher.

I wouldn't be surprised to see Snap stock rally into its earnings report on April 23, then perhaps selloff afterwards. Conversely, a consolidation/pullback period ahead of earnings could setup a post-earnings rally.

Right now, though, we have some great levels to measure against. Snap stock is technically overbought, but only in a minor way. It can certainly continue higher if bulls choose to bid up this name. On the upside, the 61.8% retracement for the 52-week range has kept Snap stock in check. However, should this level give way, it could pave the way for a rally to channel resistance, up between $13 to $14, depending on how one draws their channel lines.

It would not be the worst thing to have a one- to three-day pullback in Snap stock into uptrend support or the 20-day moving average before pushing through this 61.8% mark. This will allow Snap to shake off some of that overbought condition and give it more strength to charge through resistance.

Below $10.40, which happens to roughly be the 50% retracement level, and Snap stock may need to digest a bit more. This may include a test of $10, or perhaps even the 50-day and 200-day moving averages. Above $10.40, though, and bulls are OK.

Snap closed up 4.96% to $11.84 Friday.

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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.