As Snowflake prepares to release its earnings report tomorrow, the spotlight is on the company's performance amid its prolonged bear market. Since late 2021, Snowflake's stock has declined sharply, falling from $404 to $137.70 per share. Year-to-date, SNOW is down about 35% and has plummeted 69% from its all-time high.

Technical Outlook: Breaking the Downtrend

Snowflake remains in a long-term downtrend, with a descending red trendline acting as resistance. For investors, a break above this trendline would signal the return of bullish momentum, but this must be supported by strong fundamentals.

• Fundamental Triggers: Investors are looking for signs of consistent performance, including earnings-per-share (EPS) beats and achieving guidance targets in upcoming quarters.

Upside Potential

If tomorrow’s earnings act as a catalyst for a rally, Snowflake could challenge its $165 resistance level, a key threshold to watch. A confident break above $165 could pave the way for a run toward $237, the stock’s high from earlier this year and a significant resistance point.

Downside Risks

On the downside, Snowflake has found support near $110, its low from 2022. The green channel marking the stock's current "base" offers some technical support. However, a break below this channel would raise red flags for investors, potentially triggering a sell-off as capital flows to other opportunities amid market uncertainty.

Impact of Broader Market Factors

Uncertainty around U.S. policy, particularly related to Trump-era economic measures, adds additional risks for both Snowflake and the broader tech sector. Investors should stay vigilant about how these factors may influence individual stocks and sectors.

Momentum Indicators

The MACD (Moving Average Convergence Divergence) indicates some positive momentum. A bullish crossover above the signal line during the week of October 7th suggests improving sentiment, though sustainability will depend on tomorrow’s earnings results.

Conclusion

Snowflake’s earnings report could be a turning point, offering a chance to break free from its prolonged downtrend. Watch for key resistance at $165 and support at $110, while keeping an eye on broader market conditions and the company’s ability to deliver on its financial targets. Investors will need a combination of technical breakouts and fundamental strength to regain confidence in the stock.