I've Been A Long-Term Investor In Twitter Since $20 (PART 2)
Kay Kim | Feb 17, 2018 05:15PM ET
Long-term outlook starting to look more and more attractive for Twitter Inc (NYSE:TWTR) as it is breaking out of this "2-Year Base." As long as we stay above this 2-Year Base box (see chart below), I believe Twitter is preparing to inaugurate primary-term uptrend. Once this primary-term uptrend is fully established, I believe all-time high and beyond is what is in store for this stock forecasting in the long term.
Twitter (TWTR) is now running into this major pivot/resistance here as you can see in the weekly-chart below. We can see that the stock had a great run to the upside since the late-August of 2017, but now, it looks like, not only we are running into this major pivot/resistance, but also running into the 'overbought' territory in my oscillator below. I will have to continue to monitor this chart, but for now, chart is telling us that this might be the level where the stock might need to rest, consolidate, and digest its gains before it can continue higher. I will follow up on this chart on the next article-PART 3.
Below daily-chart was screened in the morning of the Earnings Report (2/8/20218) when the stock gaped up significantly. As you can see, it initially started to sell off right after gaping up at open, but as I have annotated in the chart below, 31-level (see arrows) was important level for bulls to hold to protect from the gap to be filled completely (It's always a better proposition when the gap--even portion of the gap remains open). This is the level at which I've decided to add more to my current holdings at 31.16.
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The gap is still open (which is a good sign) and the bulls were able to protect that 30 - 31ish level, and the stock did bounce from that pivot (arrows) and currently trading at 33.06. For this minor-term buying pressure to continue, we want to see this gap continues to be open (not filled) and bulls to continue to protect 30 - 31ish level should the price decline int the next few weeks. Let's see how it plays out in the next several weeks.
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