What’s Next For Twitter?
Kay Kim | Jun 14, 2018 05:45PM ET
Well, it's been 8 months since my first entry at 20 (PART 1) Twitter (TWTR) is up +140% since my first publicly-disclosed entry at 20 (precisely 19.51). As you can see the monthly-chart on the left side, "11/2/2017," you can see that my oscillator just starting to rise after the "Bullish Divergence" has been formed while the price is starting to clears above the downtrend resistance (purple) and staying above the "Water" (my proprietary indicator). However, on the right side monthly-chart, "6/14/2018" (today), you can see that the same oscillator is now reaching the "Overbought Territory" as TWTR closes the day with the "46.76" print. Well, to be fair, this is a monthly-oscillator so it may take effect next week or next month, but we are getting stretched here looking at things in the overall perspective. This does NOT mean it's a bearish scenario, it means that either pull back or a consolidation phase might be on the way in the minor to intermediate term.
NEXT RESISTANCE
We actually have some more room to move looking at the weekly-chart below as you can see that my weekly-oscillator has room to move with the obvious resistance is 50-53ish. However, I believe everyone has their target set at 50-53ish looking at this "obvious" resistance, probably even jumping in today to get a quick grab on this move. Well, as I've tweeted out earlier today, market loves to punish those who chase the move and I am not so sure if TWTR will get all the way to 50s before pulling back (because that 50-53ish is so obvious to many) Here, I think two things might happen:
- Either we pull back in this vicinity (before getting to 50-53 resistance) to punish the chasers
- Or, we brow right through the 50-53 leaving chasers behind for a small profit and do the unthinkable (because chasers will close the positions out at 50s)
Market is savvy like that, that's why it's always a mess once the stock gets too much attention and the public starts to get on it. But for me, which I have been holding since 20s, I am just sitting back enjoying the show.
Get The News You Want
HOLDING STATUS
I've actually completely closed out my CALLS earlier today that I entered at 31.36 (see the setup) --it was just a side trade I've had it on top of my long-term holdings. As of today, I am holding EVERYTHING--all of my SHARES; I don't trim and trail (only short-term traders who doesn't understand long-term outlook do this out of fear), because I believe, in the long-term, TWTR is ultimately going to 100. I am in 'buy-and-hold' mentality with TWTR (at least for the time being).
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.