TWTR Approaching Resistance, Potential Reversal!TWTR is approaching its resistance at 36.93 (61.8% Fibonacci extension, 50% Fibonacci retracement, horizontal overlap resistance) where it could potentially reverse down to its support at 30.35 (61.8% Fibonacci retracement, horizontal swing low support).
Stochastic (89, 5, 3) is approaching its resistance at 98% where a corresponding reversal could occur.
TWTR - let's see what you've got.**Value Zone Opportunity**
A starting position of $1000 on TWTR , entered at the closing price 34.45 is expected to return anywhere from ~ $1200 - $2650 over the next 50 - 150 days.
The plan is to:
- Have an entry above support at 31.14
- Risk no lower than 32.95
- Make sure 34.99 resistance is reclaimed before attempting 36.2 breakout
- Be mindful of reversals and market conditions
- Watching 15 minute setup to hold form similar to movement today. Despite the bearish market TWTR has held quite well and was late to see a reaction
^^^^ 50 day plan ^^^^
Outside of 50 days we will have to babysit the progress above 36.20. A catalyst will be extremely useful in this gap fill area, we will keep on watch for news and while their competition sees poor performance and lawsuits they might be worth keeping on watch
Twitter Back at Final Resistance LevelTwitter stock started to surge to the topside of the channel on October 25th. Where the company announced earnings significantly higher than the market estimates (Tradingview estimates shows Q3 earning at 3476.56% surprise...). Now price is testing final resistance level of the bearish trend. A pullback in the market specifically the Nasdaq could preasure a reversal.
Trade Step-ups:
Bearish Reversal: Price rejects a break higher from the trend. Look for a move to fill in the gap on October 25th. Profit levels to look for are 30.00 & 28.00 respectively.
Bullish Breakout: Price breaks current bearish trend channel, look for consolidation above 35.00.
TWTR - Possible Inverse Head and Shoulders PatternI believe Twitter has a strong possibility of completing the inverse head and shoulders pattern. It has made a strong move upward over the last 5 sessions and is most likely due for a rest or pull back. I believe this pull-back will form
the right shoulder completing the pattern. My feeling is that if this pattern does not complete it will be because Twitter does not pull back enough to form the right shoulder, but instead just keeps pushing higher.
My opinion is that Twitter is still undervalued at these prices and will eventually move to new all-time highs.
I should also disclose that I believe strongly enough in Twitter's potential that I have entered a long position in Twitter with both shares and options.