Although we put a 5 minute chart on this post, take the time to have a look at the of TWTR . It might look very expensive now, because within a month it made over 50%, but we're here for the short term, looking to hop on the ride. Two days ago there was some panic selling in the stock and this is a great opportunity to look for short term buying signals where we could get in and out with some profit. Today, after the two days drop, we closed the gap quite easily - within one day, which means that investors are waiting for the right timing to exploit such big drops and get in before it's too late. So, on the psychology/fundamental aspect we're OK, what about the technicals?
Applying the PivotBreak And the SmartPoints on the 5 minute chart tells us quite a few things. The yellow line indicates a , one that is already beyond the gap which we have already closed. Also, the price is stabilizing right around the middle band of the SmartPoint indicator which means that the stock is building energy to go either up, or down. Taking all the information into account, probabilities are that the price will go up, and if it will trade beyond the PivotBreak's yellow line, it's certainly a signal. another scenario is that the price may wander around a little more, maybe even trade below the purple line, but as long as it's not a harsh movement, if it will trade back through the yellow line, we can see a move at least up to $68 and above.