As Twitter goes to earnings at the end of the month I am waiting for a breakout above the cloud. I will use an 80 delta deep in the money August call. This is getting very close for a buy and a breakout
Comments
A-shot
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Why not buy now?
paulyberndt
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because you want it to close outside the cloud breaking that cloud resistance, that's the rules when using this system
A-shot
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But with this you expect a small correction from the recent run to a a buy point? (with the cloud going higher?)
paulyberndt
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The Tenkin Kijun cross is below the cloud and thats a weak buy signal. The Chikou line 26 periods in the past is above price but still below the cloud, optimum it should be above the cloud. The Kumo twist is showing a change of sentiment and is forming a support area 26 days in the future. In addition it should start to rise giving a bullish signal Twitter has been pretty beaten down and as it approaches earnings this is a trade I would be willing to play. With the NDX sector leading the market this could easy break out fast with short covering. hope this helps