Twitter Inc
Long
Updated

$TWTR bounce from retest? (4/5)

80
Conviction: 4/5
could have another leg down to complete bullish RSI-W divergence


General Thesis
  • breakout and retest from downward resistance line (2014)
  • Weekly RSI at oversold levels - ALTHOUGH could have another leg down to complete bullish divergence
  • 200WMA as support?
  • c-leg down at 100% of a leg down


Growth
  • Margins are high, although came down a bit since 2019
  • revenue growth trending up, about average


Value
  • P/FCF expensive, coming down in 2021
  • P/S about average


Fundamentals & Balance Sheet
  • low debt to asset (<1)
  • good quick ratio (4)


Potential Risks
  • expensive P/FCF
  • data does not contain last recession
  • another leg down for bullish divergence?
  • can continue to hug downtrend
Note
both RSI-D and RSI-W showing bullish divergence!
Note
Closed position, weekly close below support.

Will wait for entry at lower support.

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