Long TWTR Ahead of Earnings

On Tuesday, we noted in our Trading Room that Twitter (TWTR) had a big cup-and-handle pattern that represented a "potentially explosive bottom."

We wrote, "As the stock heads into earnings tonight, the price structure is sitting right in its completed handle, which means that TWTR is poised for a major move -- out of the handle -- to the upside, towards my original target zone of 43.00 to 45.00.

"Trading earnings can be treacherous, especially in a high-beta name like TWTR, [but] my work tells me to hold long through earnings."

As we know, TWTR beat on EPS and revenues, jumping 33% after-hours and giving us a substantial gain on our trade from July 11.

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