BIG BREAKOUT
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. 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 attempting to clear above the downtrend resistance (purple) and staying above the “Water” (my proprietary indicator). However, on the right side of the 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 the odds are catching up against the buyers in the intermediate term.
TWTR 2014 – Present (Monthly)
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 (see blue arrow) to move with the obvious resistance at 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.
TWTR 2014 – Present (Weekly)
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’ mode/mentality (hence the title “Long-Term Investor”) with TWTR at least for the time being.
PART 1 | 2 | 3
