Twitter Pulls Back Following a Breakout
Recent weeks have seen breakouts in smaller social-media stocks like Twitter and 
Snap, which have both pulled back. Today we’re looking at TWTR.
Jack Dorsey’s microblogging service didn’t only beat earnings and revenue estimates on February 9. It also showed significant traction in its direct response (DR) advertising. That sent the shares flying to new highs the next session. They jumped again on February 25 after the company targeted doubling revenue within three years.
TWTR then retreated along with other technology companies. It partially filled the bullish gap last Friday, forming a hammer candlestick near the February 9 high. Price proceeded to make higher lows the next two sessions.
The pullback also brought stochastics back to oversold levels. Given the ferocity of its move (which shows emerging excitement about the fundamental story) buyers may not see the stock again at the prices we just saw.
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Snap, which have both pulled back. Today we’re looking at TWTR.Jack Dorsey’s microblogging service didn’t only beat earnings and revenue estimates on February 9. It also showed significant traction in its direct response (DR) advertising. That sent the shares flying to new highs the next session. They jumped again on February 25 after the company targeted doubling revenue within three years.
TWTR then retreated along with other technology companies. It partially filled the bullish gap last Friday, forming a hammer candlestick near the February 9 high. Price proceeded to make higher lows the next two sessions.
The pullback also brought stochastics back to oversold levels. Given the ferocity of its move (which shows emerging excitement about the fundamental story) buyers may not see the stock again at the prices we just saw.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
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