TWTR trade ideas
Twitter Pulls Back Following a BreakoutRecent weeks have seen breakouts in smaller social-media stocks like Twitter and Snap , which have both pulled back. Today we’re looking at TWTR.
Jack Dorsey’s microblogging service didn’t only beat earnings and revenue estimates on February 9. It also showed significant traction in its direct response (DR) advertising. That sent the shares flying to new highs the next session. They jumped again on February 25 after the company targeted doubling revenue within three years.
TWTR then retreated along with other technology companies. It partially filled the bullish gap last Friday, forming a hammer candlestick near the February 9 high. Price proceeded to make higher lows the next two sessions.
The pullback also brought stochastics back to oversold levels. Given the ferocity of its move (which shows emerging excitement about the fundamental story) buyers may not see the stock again at the prices we just saw.
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Buy TwitterIt appears as if Twitter (TWTR) is in an uptrend after its 3-day downtrend where it fell from $77.65/share to $61.88/share. This sudden price drop made it fall below the support line and when it did the stock bounced back up to the support line within 2 hours. I would recommend buying Twitter (TWTR) as soon as possible.
TWTR: Phenonmenal StrengthTwitter has seen a huge run-up of late and although tech stocks are weak across the board, TWTR is showing phenomenal strength. This indicates strong buying from institutions. Business fundamentals are looking brighter and the 'super follow' feature would be a game changer.
ENTRY: $75-77
TP: $88 & $100
SL: $64