Twitter was IPO'd on November, and we've come quite a long way since then. The hype was high at the beginning, but the first month of trading was quite bleak. Later on, there was commentaries of big institutions (Blackstone and few others) talking about how Twitter could make it and become the Facebook of the next decade. This is probably the reason why the interest in that stock started to increase, and the price to surge. Since December there was a huge pop in the stock, each trading day we saw big, full green bars, with increasing volume. This is a clear sign of investors getting in, and I assume that big hedge funds also want to have their share. If Larry fink, the CEO of Blackstone is in , he is probably correct...So, how can we also join the ride?
Although we put a 5 minute chart on this post, take the time to have a look at the daily chart of TWTR. It might look very expensive now, because within a month it made over 50%, but we're here for the short term, looking to hop on the Bullish ride. Two days ago there was some panic selling in the stock and this is a great opportunity to look for short term buying signals where we could get in and out with some profit. Today, after the two days drop, we closed the gap quite easily - within one day, which means that investors are waiting for the right timing to exploit such big drops and get in before it's too late. So, on the psychology/fundamental aspect we're OK, what about the technicals?
Applying the PivotBreak And the SmartPoints on the 5 minute chart tells us quite a few things. The yellow line indicates a pivot resistance level, one that is already beyond the gap which we have already closed. Also, the price is stabilizing right around the middle band of the SmartPoint indicator which means that the stock is building energy to go either up, or down. Taking all the information into account, probabilities are that the price will go up, and if it will trade beyond the PivotBreak's yellow line, it's certainly a Bullish signal. another scenario is that the price may wander around a little more, maybe even trade below the purple pivot line, but as long as it's not a harsh movement, if it will trade back through the yellow line, we can see a move at least up to $68 and above.
Although we put a 5 minute chart on this post, take the time to have a look at the daily chart of TWTR. It might look very expensive now, because within a month it made over 50%, but we're here for the short term, looking to hop on the Bullish ride. Two days ago there was some panic selling in the stock and this is a great opportunity to look for short term buying signals where we could get in and out with some profit. Today, after the two days drop, we closed the gap quite easily - within one day, which means that investors are waiting for the right timing to exploit such big drops and get in before it's too late. So, on the psychology/fundamental aspect we're OK, what about the technicals?
Applying the PivotBreak And the SmartPoints on the 5 minute chart tells us quite a few things. The yellow line indicates a pivot resistance level, one that is already beyond the gap which we have already closed. Also, the price is stabilizing right around the middle band of the SmartPoint indicator which means that the stock is building energy to go either up, or down. Taking all the information into account, probabilities are that the price will go up, and if it will trade beyond the PivotBreak's yellow line, it's certainly a Bullish signal. another scenario is that the price may wander around a little more, maybe even trade below the purple pivot line, but as long as it's not a harsh movement, if it will trade back through the yellow line, we can see a move at least up to $68 and above.