Mika_k

month long trade opportunity for TWTR $$$$

Mika_k Updated   
NYSE:TWTR   Twitter Inc
Target 1: 25.9-26.44 (Golden Pocket)

Target 2: 23.97$ (0.8 Retracement)

Target 3: 20$

Hey everyone, so here is my analysis for TWTR. The first thing that caught my eye was the huge amount of selling volume we had on June 26th, which was followed by the relatively smaller volume we had today.

The second thing that caught my eye was the rejection of the 55 ema against the 200 EMA on the daily, the 2d, the 3d and what looks like a cross on the weekly. The last swing where this happened brought a 50% correction from 40$-20$. Take caution though, because even though this is a bearish sign, it has only appeared once, so proceed with caution.

Another thing to consider is that the MacD on the daily seems to be falling exponentionally. The histogram is negative and only getting larger, which hints toward a bearish sentiment in the market.

For the risk to reward setup on this trade, I would get out as soon as we get a full body close over the 200 ema on the daily. In addition, I would consider being very careful about getting into the trade while the rsi is where it is. It is approaching the 30 resistance, but if it breaks it, it is a very great sign that you should take this trade.

Proceed with caution, and clarity.
Happy trading!
Comment:
Today's date is July 6th, 2020. As I am writing this the market has just opened. The spy is up along with lots of the leaders such as AMZN and TSLA. Even though we seem to be hitting some decent highs on TWTR, the 8 hour, 12 hour and the daily chart shows a huge lack of volume recently. Right now the sentiment seems a lot less bearish, but I don't think we are completely out of bear territory.

Proceed with Extreme caution, and act with clarity.
Happy Trading!

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