Elliott Wave Breakdown – TWTR 9/25/2016
Twitter - TWTR
What else can I say? I recommended a successful Twitter (TWTR) trade back when its share price was in the low $30's up to the mid $45 range. Then I kept you out of the trade during TWTR's decline from the $44 area to its recent bottom at $13,73. Finally in August 2016, I turned positive on TWTR's price action after a successful uptrend.
All the above trades are documented in my articles for TWTR so they can be easily researched and proven accurate. Trendy Stock Chart members with more than 1 year of seniority have seen first-hand my stances on Twitter.
So what does the deal with the NFL and a potential buy-out rumor have on the charts for Twitter? The next chart confirms that sentiment is finally changing for the company. The power of the NFL and a beaten down share price could lead to some nice, additional gains over the next several weeks.
Elliott Wave Breakdown - TWTR
Let's start with a previous article for TWTR where I calculated a buy-in price and provided my technical analysis methods to confirm the purchase area "Twitter TWTR 8/20/2016 – Buy-In Price Calculated". (Please note this article is locked for viewing for Trendy Stock Chart members only).
The buy-in price I calculated was the $17.50 - $18 area, as identified by the gray shaded box in the linked article. Here is an updated 6 month chart where I illustrate TWTR's Elliott Wave breakdown for its current uptrend.
The gray shaded box that I identified as the preferred purchase area for TWTR's share price would have led to greater than 25% gains based on a purchase price of $18, the top of my preferred purchase zone; TWTR's share price reached a low of $17.52, $.02 above the bottom of my preferred purchase area.
Knowing how to apply Elliott Wave Analysis and by being able to identify its patterns helped me to determine the proper purchase zone for TWTR's pullback. The blue Waves 1 & 2 illustrate a complete 8 Wave Cycle from a Elliott Wave standpoint. The next objective for TWTR's share price is to build on the momentum of the first 8 Wave Cycle. How does that happen? TWTR's share price is now expected to develop another 8 Wave Cycle.
So where is the blue Wave 3 that is in process heading towards? I identified some of those upside price targets in my previous article that is linked above. If you are not a Trendy Stock Charts member, then consider joining today. I will discuss how I would look to jump in on TWTR's breakout in the Idea Chamber (members forum) so check in there later.
Twitter - Summary
It is not too late to go long on Twitter, even with Friday's breakout that was over 20%. But what is the best purchase price to pay? Check out the Idea Chamber later this evening for trading details.
Congratulations to those that purchased shares in my preferred purchase zone! Your strategy now should be a hold for the next 2-3 months until some of my upside price targets are met. The upside price targets can be found in my article for TWTR dated August 20, 2016. A request for an update on TWTR's charts can be requested at any time in the Idea Chamber.