Twitter looks primed to make a move on the monthly after breaking the downward channel (also the 2:1 Gann Fan) from its IPO price and successfully holding support. We're likely to see some chop, but this looks like a play with a very good risk/reward. I'm expecting twitter to retrace to $23.90 at least, but a move to ~$28 seems more likely given the extended downward move. High upside of the 4:1 Gann line could be in play, but that's likely too much, too soon.
Earnings are likely to be a catalyst in the coming weeks.
Earnings are likely to be a catalyst in the coming weeks.
Comment:
I expect this to sell off to the high 18's going into earnings. May be worth holding a small position going into Thursday, but that depends on your risk tolerance.
Comment:
This chop was expected, and this seems like an opportunity to pick up shares back in the mid-teens in the coming weeks. I'll be looking to initiate a position as things stabilize at new support levels.
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Initiated position this morning around $16. We could see more downside, which provides an opportunity to 'average down' with a stop below all-time lows ~$13.5. With a mere 10-15% downside risk, and multi-bag potential on the upside this seems like a reasonably conservative play for a smaller speculative position.
Comment:
Continuing to add long under $17 down to $13.5 floor. Plenty of upside potential for the patient investor. YY has been picking up steam in China, and I'd expect TWTR to piggy back on the positive sentiment in social media over the next few quarters.
Trade active:
Good news and positive analyst sentiment beginning to flow in. Validation of long-term reversal all but set now. I've since added to my core position, but will be watch for potential retests of ~$23 to add further.
Trade active:
Nice bullish move over the 3/1 gann line in a VERY weak market. Continuation seems likely before some minor pullbacks mid-year.
Trade active:
Has proceeded stronger than I anticipated. Selling a small portion of position here as a simple matter of rebalancing my portfolio, but Core position remains in tact. Will potentially look to re-add if a suitable pullback ensues mid-year (as I expect).