Tweet this Short Shelf on $TWTR. (August 28, 2020)
TWTR QQQ TWTR
This is Scott with your Free Chart of the Day. I want to take a look at Twitter ( NYSE: TWTR ). Now, Twitter ( NYSE: TWTR ), in my opinion, has been a hard stock to hold. I mean, Twitter ( NYSE: TWTR ) is dramatic enough as a website, imagine holding this stock. We get these nice runs up and then big flushes down. A nice run up, a big flush down. A big gap down, run up, run down, a chop fest here and there.
Recently, Twitter ( NYSE: TWTR ) has been trading pretty orderly. You can see how we had a run up from the end of July here. It held the 8-day exponential period moving average and broke above a pretty significant level of resistance right here.
You can see how we’ve kept these nice big volume bursts but then sellers would come in and bring it back down. A nice big volume burst, the seller comes in and brings it back down and so it’s been choppy the last little bit.
But again, recently holding that 8-day exponential period moving average. Printing higher lows and this week we actually broke to new weekly high. So I like what Twitter ( NYSE: TWTR ) is doing here. You can see how it broke above this resistance, this resistance, this resistance. And so potentially we could get a little move here from Twitter ( NYSE: TWTR ).
Now, tech stocks, as you may know, they are kind of extended. If I zoom out here you can see how the QQQs ( NASDAQ: QQQ ) are really at the top of the range.
With Twitter ( NYSE: TWTR ), I would like Twitter ( NYSE: TWTR ) to kind of base a little bit. I want it to kind of live in this high air for maybe a week or two through the nice high base of consolidation and then move above that level right there.
I think if we can get above and stay above 41.30 that would be nice for a continuation to the upside. But like I said, ideally we kind of print some inside days and live up here, build a high base of consolidation just so that we don’t get this kind of thing happening again. So ideally, we build a little bit of support up here before the next leg higher.
I think it’s worth having an alert on Twitter ( NYSE: TWTR ) at around 41.30 and take a look at it. You would want to see a move above that level coming on higher than average volume. I am talking about volume like this, nice strong daily volume pushing the stock up. That’s what I am looking for here on Twitter ( NYSE: TWTR ) and it might be worth you setting an alert on it as well.
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