Are the bulls back in Twitter Town? (January 09, 2015)
Twitter ( NYSE:TWTR ), not my favorite stock, but I’m a chart guy. I’m looking at this now and I see 35.00 support; the stock’s come down just recently, I’m not talking about the all-time stupid high here, but the stock came down quite a bit, almost 40 percent here and so it’s found a base.
I’m looking at this indicator MACD, Moving Average Convergence Divergence; it’s averages of averages of like the distance between two moving averages. It’s really not that complicated an indicator but I’m not going into that right now. This is the indicator; it had been in a downtrend, the dotted line or the dashed line here is really just kind of the line of demarcation between downtrend on the bottom, uptrend on the top, so this has been negative.
MACD is just about to move positive in to the area where if you’re a MACD freak you’re going to look at this and say now this is in an uptrend. Okay, so we’re looking at this, we’re catching this a little bit early but the stock’s looking good to me here. So look at this, figure when earnings are, I’m not going to do that for you but just know that the stock looks like it’s really done going down.
If this can break above the 200-day moving average I think you’re going to see a lot of traders coming back in to this stock. Again, it’s all ready had a pretty nasty pullback and so after just maybe a month, or whatever it is, of a little base building this is a stock that looks like a stock that’s probably climbing in to earnings. I just looked it up, I did your work for you, it’s February 5th so this has got a month really to anticipate some strong earnings.
I think it’s going to be a good trading stock and I would want to be long this stock going in to earnings, let me rephrase that, approaching earnings. Would I hold it, should you hold it over earnings? Why do you have to make that determination now? Just look for this stock to move higher and then make the decision, as far as holding the stock, after you’ve got a nice profit on your hand.
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