TWLO is trading in a downtrending channel. After breaking out of this channel, it gaps down. It finds support and begins to consolidate into a bear pennant formation. The pennant broke sending shares lower. We got a nice reversal candle today. This will likely lead to a retest of the consolidation. A short around $300 down to $260 seems possible if trend continues and 280 support fails again. Stop out just above the consolidation around 315.
Trade closed: target reached:
Played out even better than expected. Amazing short.