Twitter Set Up For A Bullish Island Reversal

The chart of twitter is a mess over the past month.

twtr_10_21

We have 3 large gaps, all unfilled due to the flurry of recent buyout rumors, causing large swings and turning the stock into a gamblers paradise.

What’s interesting from a technical perspective at the close of the day on Friday is the potential for us to walk into a bullish island reversal on Monday.

If the 7% rally higher on Friday gets follow through, we could have a tradable bottom to measure risk against with upside targets of filling one or both of the overhead gaps.

The island would “trap” 10 days of trading.

Don’t forget, Twitter is also reporting earnings next week, which will only add to the volatility and expected ranges.

Good luck to those playing.

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Evan Medeiros

Evan is the founder of the Trade Risk. With 20+ years of coding experience and a B.S. in computer science, Evan brings a systematic discipline to investing in the stock market.

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