Now that the earnings are out and TWTR got hammered back down to old levels, we can see the trail of sell orders that have hit the stock which has followed a pattern you normally see after blow-outs on the downside. Typically you will see either 3 days of selling or 3 waves of selling.
The last move down from last Friday to Monday didn't even show a rise in volume. Reduced trading volume is a sign that sellers are about done their selling and traders who are shorting the bounces and trying to front-run the sellers might be caught short and ready to be squeezed.
I think there is a low risk trade here because TWTR also acted quite strong in the market downdraft today, which further signifies that TWTR is in a good position from a risk/reward standpoint.
Time will tell.
37.50 last 12:28PM EST Tuesday, May 12, 2015
The last move down from last Friday to Monday didn't even show a rise in volume. Reduced trading volume is a sign that sellers are about done their selling and traders who are shorting the bounces and trying to front-run the sellers might be caught short and ready to be squeezed.
I think there is a low risk trade here because TWTR also acted quite strong in the market downdraft today, which further signifies that TWTR is in a good position from a risk/reward standpoint.
Time will tell.
37.50 last 12:28PM EST Tuesday, May 12, 2015
Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com
