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Fan Yang

Twitter (TWTR) Putting in More Signs of a Bottom

Twitter has been resilient down here around 14.00 and has recently started to form a mini-price bottom with the price action throughout May and into June. 

TWTR 4H Chart 7/1

(click to enlarge)

Price bottom: As we can see in the 4H chart, price finally bounced off 14 and made it above the cluster of 200-, 100-, and 50-period simple moving averages(SMA). Price also pushed above 16 and above a falling speedline. Furthermore, there was a dip following Brexit. This dip provided confirmation that the market is respecting the price bottom as buyers scooped up TWTR at 15.50 and pushed it back above 16.00 again. 

Upside: After this recent "dance" by TWTR, I am convinced there is further upside in the short to medium-term. First the 18.00 pivot is the short-term bullish target, followed by the 20.00 handle, which is near the March high and the high of the current consolidation structure. 20.00 will be a critical level. A break above it can establish 2016 price action as a bottom and open up a bullish outlook for 2017.

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