Twitter Inc (TWTR)

[ITMS]

Trade Lesson: The Best Moves Come From Failed Moves

There is an old market adage that states, the best moves come from failed moves. If you have taken the InTheMoneyStocks.com Methodology Revealed trading course you have seen this proven many times. Today, I'm going to give you an example of a failed move in a stock that almost everyone knows.

The stock is Twitter Inc. (NASDAQ:TWTR). As you all know, this stock had been one of the strongest stocks in 2018. In January 2018, TWTR stock was trading as low as $23.68 a share. Then the stock started to rise and traded as high as $47.79 a share on June 15, 2018. That is a 100.0 percent gain in just six months. Then TWTR stock began to trade sideways for a little over a months time forming a bullish consolidation pattern. It should be noted that bullish consolidation patterns usually signal a major upside breakout is on the horizon. Unfortunately, TWTR stock plunged lower after its earnings report breaking the bullish pattern. This tells us that the stock wants to go sharply lower. Often failed moves lead to significant downside and that is evident in the current TWTR stock price. Today, TWTR stock is trading lower by $1.93 to $32.18 a share.

TWTR stock will have some daily chart support coming up around the 200-day moving average which is around the $30.00 level. Should this level fail to hold as support then traders will have to look lower toward the $25.00 area. This trade level is where the stock broke out in February 2018. Often, prior breakout levels will be defended when retested.




Nicholas Santiago
InTheMoneyStocks