Monthly time frame:
- The trend is down (Lower highs/lows) as long as the 10 mma = 26.80 is not reclaimed
- From the 2013 top TWTR has lost 82% of its value. Is the punishment enough?
- So far we have a small range body
- In order to improve the prospect of a bottom TWTR has to breach the trend line from the 2015 lower high and reclaim the 2015 low located at 21
Weekly time frame:
- From the 2014 peak TWTR has formed a potential Falling Wedge (Bullish pattern)
- Obviously until the resistance located at 21 is not breached we will not have the confirmation that the Falling Wedge is done
- If zoom in the potential Falling wedge we can see that TWTR has ended the week with a bottoming tail (Hammer)
- The Hammer can be an igniting bar
- The immediate resistance is located at R1=18.77; then we have the 10 wma and the upper converging trend line at 19.80 +/-
- Above R2= 21 odds should favor a retracement at the target R3= 29.50
Daily time frame:
- We have a potential reversal pattern: Thursday's gap down printed an inverted Hammer followed by Friday's gap up and go with a large wide range body which closed Monday's breakdown gap
- Now if this initial positive move is something more than just a short-lived oversold bounce TWTR has to neutralize February 2 Island reversal by reclaiming the resistance located at 17.27
- Daily oscillators are poised for higher prices ahead: RSI has a positive divergence and it has breached the trend line resistance from the October 2015 high and the MACD has a new bullish cross
