TWTR, Best and Worst Case Scenarios, We go Long but smartly!
Is TWTR on the way to make a new ATH? of course it is possible in best case scenario. Is there another scenario? Lets follow !
There are two scenarios with high probability at the moment for TWTR. Although there are some other possibilities, we simply skip them as they have very low probability for now.
Best Case Scenario:
In best case scenario, TWTR has completed the corrective wave 2 of a new 5 up going waves at 0.618 retracement of wave 1 from 49.12 to 71.25. In this scenario labeled wave 1 has been started at 50 % retracement of last major rally from 20 to 80.75 USD. If true we will see a new ATH at the prices above 100 in following weeks. It is worth to note that still price can reach to 54 USD at 0.786 retracement of wave 1 in this scenario.
Worst Case Scenario:
In worst case scenario we are just in the middle of wave C of a larger abc correction of the last major rally. In this case, correction continues down to around 43 USD to meet the 0.618 golden ration of the last major up going wave and 71.25 high is just the top of wave b at 0.786 retracement of last drop labeled as wave a.
What these two scenarios suggest us?
In case of best case scenario our Reward to Risk is extremely high. So it is wise to go long at current prices but it is necessary to keep in mind that there is another possibility. Therefore we can set our stop loss to 58.4 (last formed low ) and see which path will the market follow.
My opinion:
Best case scenario is more probable. It is useful to consider that TWTR is in the list of top 30 hedge fund's favorite stocks published by yahoo finance around one month ago.
We know we have alternative scenarios. So we trade smartly. Don't we?
There are two scenarios with high probability at the moment for TWTR. Although there are some other possibilities, we simply skip them as they have very low probability for now.
Best Case Scenario:
In best case scenario, TWTR has completed the corrective wave 2 of a new 5 up going waves at 0.618 retracement of wave 1 from 49.12 to 71.25. In this scenario labeled wave 1 has been started at 50 % retracement of last major rally from 20 to 80.75 USD. If true we will see a new ATH at the prices above 100 in following weeks. It is worth to note that still price can reach to 54 USD at 0.786 retracement of wave 1 in this scenario.
Worst Case Scenario:
In worst case scenario we are just in the middle of wave C of a larger abc correction of the last major rally. In this case, correction continues down to around 43 USD to meet the 0.618 golden ration of the last major up going wave and 71.25 high is just the top of wave b at 0.786 retracement of last drop labeled as wave a.
What these two scenarios suggest us?
In case of best case scenario our Reward to Risk is extremely high. So it is wise to go long at current prices but it is necessary to keep in mind that there is another possibility. Therefore we can set our stop loss to 58.4 (last formed low ) and see which path will the market follow.
My opinion:
Best case scenario is more probable. It is useful to consider that TWTR is in the list of top 30 hedge fund's favorite stocks published by yahoo finance around one month ago.
We know we have alternative scenarios. So we trade smartly. Don't we?
Comment:
Best case scenario did not happen. 52-54 USD is next support zone for best case scenario.
Trade closed: stop reached