Summer has officially arrived in South Florida.
Not the calendar version.
The real version.
The kind where you step outside at 8am for “a little morning sun”…and 15 minutes later you’re already sweating through your shirt questioning every life decision that led you here.
Miami in the summer feels aggressive.
By July, I basically become nocturnal.
Gym early.
Errands early.
Then inside until further notice.
And maybe that’s why lately I’ve been thinking about the complete opposite.
Cold weather.
Winter.
Snow.
Cold plunges.
Clean air.
Silence.
Which is funny… because when I sat down this week to review charts and look for the strongest setup in the market, I kept getting pulled toward a company that represents exactly that feeling.
Not heat, not chaos, and not hype.
Something cooler, more structured, and more overlooked.
And technically?
The setup is starting to look really interesting.
Here’s the setup →
The Trade: Snowflake Inc. (SNOW)
And technically…the setup is starting to look really interesting.
Software stocks showed meaningful relative strength today, with iShares Expanded Tech-Software Sector ETF IGV 0.00%↑ pushing higher and signaling renewed momentum in the space.
At the same time, one particular software name exploded more than 10% in a single session as price reclaimed the 20-day SMA and broke out of structure!
What makes this setup especially interesting to me is that despite the breakout, the stock is still trading below its 200-day SMA.
In other words:
→ the position trade may have just bottomed.
→ the leveraged swing trade may just be getting started.
→ while the longer-term buy & hold opportunity still appears discounted.
And in a market where everyone seems focused on the same crowded trades, I haven’t heard many people talking about software names like this one at all.
Snowflake Inc. (SNOW)
Current Price: $189.16
Sector: Technology XLK 0.00%↑
Sub-sector: Software
Fair Value: $223 (37% discount to fair value)
Entry Zone: $135-153
Stop Loss Zone: $118-120
Market Context
The S&P 500 SPY 0.00%↑ and the Nasdaq QQQ 0.00%↑ are still trading at extreme-high RSI readings and are at all-time highs.
The Technology sector XLK 0.00%↑ and Semiconductors SOXX 0.00%↑ are also hitting extreme levels, so you can deduct that this is a technology, specifically a semiconductor rally which presents opportunities in other sectors, like software IGV 0.00%↑ .
I gave out a Technology sector XLK 0.00%↑ trade idea in this week’s Sunday Market Playbook, which is another software stock trading undervalued and looks great here, but I wanted to go with a different undervalued software stock here.
Price popped 10% today and closed above its 20-day SMA signaling a new breakout is underway here!
I’ve been in SNOW in my buy and hold account for years now and have positioned traded it. I’m also looking into a 2x leveraged swing trade in SNOU.
Why This Trade Matters (Don’t Skip This)
This trade matters because it represents something bigger than a single green candle.
For months, many software stocks have remained under pressure:
Stretched valuations reset.
Momentum faded.
Capital rotated elsewhere.
However, markets move in cycles.
And lately, there are signs that money may be rotating back into software and higher-quality growth names again.
That’s important because: leadership often starts quietly before the crowd notices.
This setup matters because it combines:
Improving technical structure.
Renewed sector strength.
A company operating directly inside one of the market’s most important long-term themes:
Cloud computing.
Enterprise data.
AI infrastructure.
At the same time, the stock still isn’t extended.
It’s not sitting at euphoric high and it’s not a fully crowded trade and it’s still trading below its 200-day moving average despite breaking out.
That creates an interesting opportunity:
Traders can participate in momentum.
While longer-term investors may still be buying at a discount relative to prior highs.
And psychologically, this matters too.
Most traders only become interested after a move becomes obvious.
But the best risk/reward opportunities often appear during the transition:
When the breakout is beginning.
When sentiment is still mixed.
When the crowd hasn’t fully returned yet.
The best trades don’t matter because they already worked. They matter because the market is just beginning to notice them.
Why Invest in SNOW Right Now
This isn’t just a momentum trade.
It’s a combination of:
Improving technical structure.
Software sector strength.
AI/data infrastructure exposure.
A stock that still appears discounted relative to prior highs.
That combination is what makes this setup interesting right now.
1. Software Stocks Are Showing Strength Again
One of the biggest developments this week wasn’t just SNOW itself.
It was the strength across software as a whole.
iShares Expanded Tech-Software Sector ETF IGV 0.00%↑ surged higher, signaling renewed momentum and participation in software names again.
That matters because: strong individual stock moves become much more powerful when the entire sector begins participating.
This isn’t a stock moving completely alone.
It’s moving with sector confirmation behind it.
2. SNOW Just Broke Out Technically
Technically, this is where things start getting interesting.
SNOW:
Exploded more than 10% higher.
Reclaimed the 20-day moving average.
Broke out of structure.
That signals:
Momentum is returning.
Buyers are stepping in aggressively.
A potential new markup phase may be beginning.
This looks like a transition out of accumulation and into expansion.
3. It Still Looks Discounted Longer-Term
This is one of the most compelling parts of the trade.
Even after the breakout: SNOW is still trading below its 200-day moving average.
That’s important because:
The stock isn’t fully extended yet.
Institutions may still be accumulating.
and the longer-term recovery may still be early.
This creates:
A swing trade or position trade opportunity for active traders.
A buy-and-hold opportunity for longer-term investors.
4. AI Needs Data Infrastructure
Everyone talks about AI, but AI doesn’t function without data infrastructure.
That’s where SNOW becomes interesting.
SNOW operates in:
Cloud data storage.
Enterprise analytics.
AI-ready data architecture.
As companies continue building AI systems, they need:
Scalable cloud infrastructure.
Real-time data organization.
Enterprise-level analytics tools.
SNOW sits directly inside that ecosystem.
5. Nobody Is Really Talking About It Yet
This might honestly be the biggest edge.
Right now:
Most attention remains concentrated in the same mega-cap AI names.
While software names like SNOW are still relatively under-discussed.
That’s where opportunities often emerge.
The best trades usually begin:
Before the crowd fully returns.
Before headlines become obvious.
While sentiment is still mixed.
SNOW offers a rare combination of sector strength, technical breakout momentum, AI infrastructure exposure, and longer-term recovery potential while still trading below its 200-day moving average.
I’m not chasing this trade because it already worked.
I’m interested because the breakout may just be getting started.
Key Player Status
SNOW is a key player in the AI and cloud data infrastructure space through its role in helping enterprises store, organize, analyze, and share massive amounts of data across cloud environments.
AI systems rely heavily on clean, accessible, and real-time data to operate effectively, and SNOW’s platform helps provide that foundation for businesses building AI-powered applications and analytics systems.
While SNOW isn’t a consumer AI company building chatbots or AI chips, it operates in one of the most important layers of the AI ecosystem: enterprise data infrastructure.
As AI adoption continues expanding, SNOW is positioned as a major infrastructure and analytics player supporting the long-term growth of enterprise AI.
SNOW chart markup →
SNOW Technical Setup & Analysis
SNOW is has entered a breakout below it 200-day SMA giving us a nice opportunity to add to an undervalued buy and hold position along with opening a swing or position trade.
Pattern: price is entering a breakout below its 200-day SMA.
Price closed above its 20-day SMA signaling a breakout is most likely underway.
Key Support: $120
Ideal Entry: $135-153
Stop loss: If price breaks below $118-120, exit.
If it holds and IGV continues breaking out, you’ve got room to run.
Resistance Levels:
Short-term resistance: $180
RSI: Once the RSI is 50 or greater, the trade is past a buy point.
Targets:
$270 (previous high target)
$223 (fair value target)
$205 (200-day SMA target)
Extreme-high RSI reading greater than 70.
Position Sizing:
Position sizes: 1-3% for buy-and-hold; 1-2% for swing trades.
Final Thoughts
Maybe it was the Miami heat getting to me, but this week I found myself looking for something cooler, calmer, and more structured and that’s exactly what this setup offers.
Great trades rarely feel obvious at the beginning.
They usually start quietly while most people are still looking somewhere else.
Following a systematic approach, reading market structure, and staying disciplined compounds over time.
Let me know what you’re watching and thank you so much for reading! 🙌
-Nurse Jess 🤝
📌 Bookmark this post. Track these setups through the week and see how they play out. This is how you develop an edge—by studying real-time trade ideas and learning what works.
Financial Disclaimer: This is not financial advice. All trades carry risk. Biotech stocks are highly volatile and speculative. Always do your own due diligence and consult with a financial advisor before making investment decisions.