Another day, another incredible display of strenght in US markets. Today the market opened and bears tried to push it down, but once again without any luck. After the first 15-minutes, everything was back to usual and we had green bar after green bar and as of writing this we are making highs for the day.
However someting else drew my attention today. I have long been following TWTR (Twitter) and been waiting for a good moment to jump in with tier 1 size ( small size) I think this moment might be here.
As you can see from the chart above 35$ seems like a pretty serious resistance for this stock. Multiple times it had failed to claim it and when it did, it was sent to the bottom of the range on HUGE volume. I think that if market conditions are right and we see some kind of break above 35$ on decent volume this is a good opportunity to jump in twitter. This company has accelerating growth stats and EPS (except the last EPS) are pretty solid and on track.
Keep in mind that the stock is pretty extented from the 8 and 21-day moving averages, which means that a pull-back is in order and would be very healthy. I definitely would be careful with this one, it looks good but still it is extended, just like the market itself. Headline risk is always a factor with these guys also.
Take care, friends ! Let me know your thoughts.