Zman313

Twitter's shoulders are under a lot of pressure

Short
NYSE:TWTR   Twitter Inc
Simply put, I see the bearish-reversal Head & Shoulders formation on Twitter.

Once confirmed with a strong breach below the $26.00 (the formation's neckline), I see two price targets south of the mentioned neckline:

  • $17.40-$19.50 levels (Fibo extension near an old breakout gap)
  • $6.00 (classical measure of a typical H&S formation)

Volumes has been dropping since the creation of the left shoulder, indicating less interest in market participants' appetite for the share.

The proper stop-loss for such short position should be above the right-shoulder's level (>37.23). Your risk-appetite, however, could be different.

*Always remember: this is an opinion, not a recommendation*

May the trend be with you
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