If you like to play earnings for volatility contraction, there are a ton this coming week. Here are the ones that made my cut for volatility contraction plays based on options liquidity and bang for your buck as a function of stock price:
TWTR (49/73/15.9%),* announcing Thursday after market close.
MGM (16/69/15.2%), announcing Thursday before market...
TWTR is continuing its run after a gap-up post SNAP earnings. Conservative estimate puts TWTR PT at 52 early this week after which TWTR is likely to face a corrective wave down. This is likely to be a correction down to a demand zone at 46.2, after which, TWTR will resume moving up to start a larger Wave 5 up.
TWTR will report earnings 10/29 after the bell.
$TWTR hasn't broken out,
Instead, it range traded then dumped from $50 to $13 and back to $50
An accumulation pattern, a very bullish one.
The same structure can be observed on $FB
Just before it broke out from $70 to $274
That's right folks,
a %1000 bullish move since $FB cracked that accumulation pattern.
Targets for $TWTR
Congratulations to those who followed my linked idea. We got in nicely around $46.
My main target still stands around $53, there is a possible 2nd target around $52 as there is a weekly resistance there.
I believe we will go up after yesterdays very bullish hammer. It dropped hard but got bought back very well and even ended positive.
Since the March low Twitter has been trading within a channel that it is currently trying to break out from.
Additionally $ NYSE:TWTR TWTR is currently making new 52week highs, which is always a good setup for a long position.
With the earnings in mind it will be interesting to oberserve whether we can break out of the channel and continue the bullish momentum...
love twitter but retrace was stronger than predicted
C&H was denied and now forming a "pennant" kind of formation
Long above 46 with 50 & 52 Mid term profit levels
Neutral on break below white line & paying attention on reaction of price if it moves to red area
Twitter has recently broken through the 6-year trendline as seen in the chart. This week it has successfully retested the trendline as support as well.
The Twitter train is about to get wings and fly upwards.
Target 1 would be 50
Target 2 would be 53.48
I believe the move up will start next week.
This is not financial advice, do your own research.
Levels are not drawn to scale, still looking for the development of a 1-2 structure, but definitely looking to retest the local high. Will post updated levels closer to target. Copyright Rohan Karunaratne 2020