TWTR - to Long or Not to Long
With $TWTR just having reported earnings, where will things be headed for this stock, and how do we trade it?
Let’s take a look at the current chart of $TWTR on the daily timeframe:
For the past year, prices have been meandering about the 200MA, without a clear sense of direction. In afterhours, the stock is trading below the 200MA as well. As trend followers, we tend to stay out of stocks that are below the 200MA, and $TWTR is a prime example of this.
Should the stock breach the 200MA on the daily, before we get long this stock, we should be looking at the weekly timeframe as well:
Here, the stock is still below major moving averages. A breach and close above the 100MA (yellow curve, currently at $17.94) would be a signal to go long this stock.
For now, this stock is a sit-and-wait situation, and it is one we’ll keep on our watchlist.