Twitter, Inc. (NYSE:TWTR) put on the radar for a breakout trade
Twitter (NYSE:TWTR) experienced the narrowest of victories Monday, but smart investors would be wise to give credit where credit is due both off and on the price chart. And now is an ideal time to put Twitter stock back on your buy radar.
Specifically, our plan of attack would be to put TWTR on the radar and go long shares on a move above $34. That’s narrowly above Monday’s and last Thursday’s highs, but would be enough to confirm a breakout of the technical resistance described above. If triggered, I’d recommend using the three-day low as a stop-loss.
By waiting for $34 to be penetrated, traders can expect a better chance of success. The move through this key price level is anticipated to help fuel fresh upside momentum in TWTR stock from bullish buyers, as well as some of Twitter’s 6% short interest covering their losses. In turn, the breakout should lead to a quick test of Q2’s bearish price gap from roughly $37.50 – $42.25 and big profits for positioned bulls.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 37.87.
The projected lower bound is: 31.67.
The projected closing price is: 34.77.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 84.2503. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 8 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 69.12. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 31 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 161.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 25 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.890 at 34.750. Volume was 34% above average (neutral) and Bollinger Bands were 3% wider than normal.
Open High Low Close Volume___
34.370 35.630 34.350 34.750 6,495,839
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 30.88 30.58 33.37
Volatility: 93 65 71
Volume: 6,645,164 4,809,051 5,648,639
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
TWITTER INC is currently 4.1% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 7 periods.
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