After the monster 25% rally in pre-market earlier today, TWTR has now reached a key resistance zone around $49 per share. We are seeing strong selling pressure occurring on above-average volume, which apart from profit taking from the Longs, also comes from the VWAP resistance line anchored all the way back to the huge downside gap for the stock on April,30th 2021. This is the first test of that level since the current bearish trend for the stock began back in late October last year. Thus, we believe that there is a high volume of pending SELL orders around that VWAP line, which will put heavy pressure on the price. In addition to that, we also expect to see a substantial pick up in the VIX in the coming sessions, which will put further pressure on stocks that have overextended themselves to the upside in recent sessions.
Since the market opened today we've had a pin bar forming on the 45 min chart followed by an inside bar after that. This is a typical and reliable bearish reversal signal, that we believe could send the price sub $45 in the near term. We will keep our Stop Losses tight at $51.18, in case the stock makes another push higher, even though that from what we are seeing this is unlikely to happen.
Good luck!
Kind regards,
Dow Experts Finance
Since the market opened today we've had a pin bar forming on the 45 min chart followed by an inside bar after that. This is a typical and reliable bearish reversal signal, that we believe could send the price sub $45 in the near term. We will keep our Stop Losses tight at $51.18, in case the stock makes another push higher, even though that from what we are seeing this is unlikely to happen.
Good luck!
Kind regards,
Dow Experts Finance