After a pretty incredible run after what I would consider to be uncompelling earnings, TWTR appears to have formed a spinning top/doji on the weekly (left chart). This is usually indicative of a price reversal after strong move. All of this also falls in line with my wave count and the price is currently sitting below an important Gann angle that will provide some resistance.
At this level TWTR has actually returned to previous all-time high where it will surely meet additional resistance. Zooming out on the chart it almost looks like the possible formation of a giant cup and handle with the handle still needing to be formed. I do believe that twitters price will possibly break $100 in the next two years but I think this run was premature and at post IPO price high, TWTR is primed for a selloff.
On the 4hour chart you can also see a doji forming from the last movements of the day. RSI also appears to be broken below 70 after reaching 90 during the run - With our RSI cooling off price may need to find a new support level before continuing upwards. Also appears to be a hook on the MACD which could represent a failed breakout attempt. With this in mind, I believe it is possible for Twitter to retrace to the mid $60 price level (or lower depending on overall market changes - FED policy on watch) within the next month. Also, with Jack Dorsey as well as FB and Google CEO's set to appear before members of the House Energy and Commerce Committee on March 25, Big Tech could be in for some turbulence in general.
Counter: It is possible that TWTR is still working on the fifth wave completion which might have a little bit more upside taken price close to the $80 price level. I have watched many strong resistance points be broken by the moment in the market right now so that is also a possibility here. Even so, the move is nearing completion so this would be in the short term (1-2weeks) before the larger correction happens after stretching the price even further to extremely overbought conditions.
At this level TWTR has actually returned to previous all-time high where it will surely meet additional resistance. Zooming out on the chart it almost looks like the possible formation of a giant cup and handle with the handle still needing to be formed. I do believe that twitters price will possibly break $100 in the next two years but I think this run was premature and at post IPO price high, TWTR is primed for a selloff.
On the 4hour chart you can also see a doji forming from the last movements of the day. RSI also appears to be broken below 70 after reaching 90 during the run - With our RSI cooling off price may need to find a new support level before continuing upwards. Also appears to be a hook on the MACD which could represent a failed breakout attempt. With this in mind, I believe it is possible for Twitter to retrace to the mid $60 price level (or lower depending on overall market changes - FED policy on watch) within the next month. Also, with Jack Dorsey as well as FB and Google CEO's set to appear before members of the House Energy and Commerce Committee on March 25, Big Tech could be in for some turbulence in general.
Counter: It is possible that TWTR is still working on the fifth wave completion which might have a little bit more upside taken price close to the $80 price level. I have watched many strong resistance points be broken by the moment in the market right now so that is also a possibility here. Even so, the move is nearing completion so this would be in the short term (1-2weeks) before the larger correction happens after stretching the price even further to extremely overbought conditions.
