Long TWTR Ahead of Earnings
by Mike Paulenoff
August 2, 2014 • 11:08 AM EDT
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.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
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