Twitter (TWTR) is forming a pretty tight flag pattern. Here’s how I’d play it. (April 29, 2019)TWTR GOOGL
I want to talk about Twitter ( NYSE: TWTR ) real quick. Because the NASDAQ will be down at least a little bit at the open; because Google ( NASDAQ: GOOG ) reported earnings and they sucked (it couldn’t happen to a better bunch of guys) we will probably get a little bit of blowback in the rest of the tech sector, just because that is what happens, that’s what people do. How far this pulls back is going to be real important; because as I am looking at this stock here I see the breakout. And then you can look here and this little three pattern pull back, three candle pull back, that’s a little tight flag pattern.
What you see here is, right around $40.00, a little above 40.00, that’s where resistance is and so far the stock is holding below that resistance. If the stock starts breaking out above 40.00 on volume, that’s your buy, right there. I think right now you have got a risk in buying because you are anticipating a move higher. Don’t anticipate, you don’t really get that much extra reward. It is at 39.78, what are you going to get by buying now, $0.22 in profit before the stock really tests $40.00 or whatever that high was, a little over 40.00? No, wait for signs that the stock is breaking out; because you just don’t want to make that much money, you want to ride this thing up. You intend on holding it for a while.
So the only reason you are buying it is if you think that it is going to keep going, so wait for some kind of confirmation. If you are only chipping around, buying it for a dime or something like that, then you have to be looking at 39.78 anticipating. Don’t do that. Just wait for the stock to come to you. Set an alert, the high here is 40.54, so set an alert at 40.33. And then if your alert gets hit you know to look at this stock and then wait for it to come above 40.54 and then you can be buying it right, at the right time, at the right price.