TWLO has established a strong support zone around 62 - 68 as can be seen on the weekly chart.
Weekly bullish divergence in it's RSI can be seen since June while the stock was meandering lower, eventually hitting into the long term support zone and we finally saw a good bounce off this zone on strong volume yesterday.
There is a good chance that this zone will continue to act as the support (though never say never!). Those buying near this support could place a stop loss slightly below this zone. However there is a chance the stock could be choppy for a while and we might not see real momentum until it can trade a fair bit higher.
Hence a more "conservative" trader would probably prefer to wait till it garners enough momentum to at least break above the near term neckline resistence before going long (by then we have the 20 MA firmly crossing above the 50MA).
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!
Weekly bullish divergence in it's RSI can be seen since June while the stock was meandering lower, eventually hitting into the long term support zone and we finally saw a good bounce off this zone on strong volume yesterday.
There is a good chance that this zone will continue to act as the support (though never say never!). Those buying near this support could place a stop loss slightly below this zone. However there is a chance the stock could be choppy for a while and we might not see real momentum until it can trade a fair bit higher.
Hence a more "conservative" trader would probably prefer to wait till it garners enough momentum to at least break above the near term neckline resistence before going long (by then we have the 20 MA firmly crossing above the 50MA).
Disclaimer: Just my 2 cents and not a trade advice. Kindly do your own due diligence and trade according to your own risk tolerance and don't forget that money management is important! Take care and Good Luck!