Declining volume indicates that this is a Bull Flag waiting for a breakout. We've hit the yellow dotted trend line and are hovering above the daily 50 Day MA so I expect a move pretty soon. RSI has cooled of and looks like it could be bottoming out. My only concern is that we haven't re-tested the previous high of 36.91 yet. So it's possible we fall down from this flag and test that level as support. From there I expect we would start heading back up so I would be looking for an entry around that level.
I have entered a small position for now with a stop loss at 39.9. If this is a valid Bull Flag then 55 will be the target with profit taking along the way. This target also coincides with resistant levels from previous highs in 2015 (the red lines), so I expect there will be profit taking if we hit those numbers.
There is fairly high expectations for Twitter's Q2 earnings which I think will provide the catalyst for the breakout. This kind of speculation is risky though which is why I have kept my position small for now.
***Disclaimer*** this is for educational purposes only!
I have entered a small position for now with a stop loss at 39.9. If this is a valid Bull Flag then 55 will be the target with profit taking along the way. This target also coincides with resistant levels from previous highs in 2015 (the red lines), so I expect there will be profit taking if we hit those numbers.
There is fairly high expectations for Twitter's Q2 earnings which I think will provide the catalyst for the breakout. This kind of speculation is risky though which is why I have kept my position small for now.
***Disclaimer*** this is for educational purposes only!
Trade active:
Small position got stopped out after we fell down after a mixed earnings report, but I've just entered another Long position at around 36.