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HAL9000
Sep 10, 2018 11:47 AM

Expected rebound, then what? 

Twitter, Inc.NYSE

Description

Fundamentals
Questionable considering the current regulatory issues faced by Social Media stocks

Technicals
Poor on most time frames
Look at the potentially beautiful H&S formation on the weekly chart (potentially negative)

Flows
Negative for now, could be getting a boost/rebound this week after holding and closing the 50 SMA last week
Will very much depend on the market situation, also bound for a rebound this week after holding SMA 50

Conclusion
Expect short-term rebound within the 30-35 area
Medium term caution required, especially in the current market context
Another break (and close) below the neckline would bode badly for the stock and confirm H&S
If H&S formation confirmed then target becomes 22/share, where the stock previously broke out

Action
LONG-TERM investors should await to get more clarity on the fundamental (negotiation with Senate) and technical (H&S formation) pictures
SHORT-TERM traders could buy the rebound here and target the MA200 at $32: BUY here (30.49), TARGET 32 then 34, STOP-LOSS at 29.80

Trade closed: stop reached

Poor picture confirmed for longer term holders.
Short-term rebound did take place as expected but was short lived.
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