Quick video-clip of why I own TWTR since $20
MONTHLY
I’ve been watching Twitter (TWTR) ever since the IPO back in 2014. But I never placed a single trade on it until just recently, and I have been accumulating sizable SHARES (no options) on TWTR at around $20ish. In March, I wrote an article explaining why I would be a long-term buyer at $10 per share on Twitter. Well, that analysis didn’t pan out so I was waiting for it to breakout above this major primary-term downtrend resistance as you can see in the chart below (purple downtrend line).
As the stock finally broke out of this major primary-term downtrend resistance back in October of this year (stock hits as high as $22.00 per share at that time), I was waiting for a pullback to accumulate SHARES. In early November, stock did pullback to 19-20ish and that was the perfect level for me to start accumulating stocks (see the chart here and watch the video above for more in-depth explanation).
19-20ish price level definitely was a perfect entry for my time-frame, not just for the short-term but also in the long-term perspective as the stock was trading “Above Water” and forming “Bullish Divergence” (it means there were many investors, even ‘smart money’ accumulating SHARES, thus more buyers then sellers under the hood) on this monthly-chart.
Above chart was screened on 11/2/2017 when Twitter was trading at $20.00 per share
WEEKLY
Currently stock is, now, retesting, probably one of the most important and pivotal level since the stock tanked in 2015. This horizontal resistance at 25ish (see blue arrows) is the extremely important level to overcome if Twitter wants to inaugurate and establish a sustainable primary-term uptrend here.
Technically, we are still not in a primary-term uptrend as of today until we see a legitimate breakout of this level of 25ish (we are still in consolidation or accumulation phase if we look at this in the big picture–stock is moving sideways since the mid-2015).
If Twitter can breakout of this level of 25 to the upside, retest 30, and then pullback down to 25 (if so, I’ll be buying this dip hard!) for a bounce back and clear above the 30, would be a perfect scenario!
Let’s see how Twitter deals with this level in the next several weeks, and more updates on this chart on the next PART 2 article.
DAILY
Finally, this big “Downside Gap”has been filled completely. This is a good news for the buyers in the primary to intermediate term, but a bad news for the minor to intermediate term. Often times (not always), when the gap gets filled (especially a huge gap like this), it’s inevitable that the stock pulls back and struggles for a short while before it goes back up.
Given the fact that, as we’ve seen on the weekly-chart above, that strong 25ish level; now, with this gap fill, I can’t help to think we may see a pull back here–‘overhead supply’ is pretty strong at this level. But, if we can able to stay above 25 – 26ish level for couple weeks or more, Twitter might not have to suffer a pullback.
Well, let’s see how it plays out in the next few weeks as Twitter is trading at a very interesting level.
Disclosure: I own shares of Twitter (TWTR) since 19.39, 19.89, 20.00 and 21.15
