Twitter, Inc. is a global platform for public self-expression and conversation in real time. It provides a network that connects users to people, information, ideas, opinions and news. The company’s services include live commentary, live connections and live conversations. Its application provides social networking services and micro-blogging services through mobile devices and the Internet.
Take a look at the 18-month chart of Twitter (TWTR) below with the added notations:
Chart of TWTR provided by TradingView
TWTR appears to have declined into a double bottom price pattern. As with any price pattern, a confirmation of the pattern is needed, and TWTR would confirm the double pattern on a break above the $52 resistance level.
The Tale of the Tape: TWTR may be forming a double bottom price pattern. A long trade could be entered on a break above the $52 level with a stop placed under that price of entry.
Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.
No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key…
Good luck!
Christian Tharp, CMT