Twitter Gives Us Both Sides of the Trade
by Mike Paulenoff
May 9, 2014 • 12:00 AM EDT
Our Twitter (TWTR) calls this week were successful on both the initial downside and the recovery rally.
On Tuesday May 6 we noted that "all roads point to a test of the lower channel line off the February high." Our chart indicated that a 1% downside penetration of the lower channel boundary would project into the 31.80/75 target zone prior to our expected recovery rally.
Indeed, Twitter, which was trading at 33.36 at the time, reached our downside target at the open on Wednesday and actually dropped below 30.
We put on a long trade at 30.80 on Wednesday and rode it for a 5% gain in 1 day (Twitter got as high as 32.98 on Thursday).
My near-term pattern work on TWTR argues that the stock is in a partially completed initial recovery rally phase that has unfinished business on the upside to a minimum target of 33.70-34.00 and an optional target of 35.50 to 37.00.
See our chart below from Thursday.
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
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
Every person on the planet is now aware that early on Saturday night, June 21st, 2025, the U.S. military attacked and severely damaged (destroyed?) Iran's nuclear sites and presumably their ability to produce nuclear materials needed to create a WMD.
Last Wednesday afternoon (6/11/25), with META circling 700 after establishing a 4-month new post-April 2025 recovery rally high at 708.87, this is what we discussed about the current technical setup: Just a heads up that my pattern work is warning me that the 52% upmove from the 4/07 low at 467.31 to today's (6/11) high at 708.87 has the right look of a completed, overextended, overbought, unconfirmed rally peak that leaves the price structure vulnerable to a correction of some magnitude.
On May 6, 2025, during the final hour of trading, and before AMD was scheduled to report quarterly Earnings that evening, I posted the following analysis to our MPTrader Discussion Room:AMD reports Earnings after the close... The only conviction I can derive from my pattern work is that the 4/08/25 low at 76.48, which represented a 66% correction from the March 2024 high at 227.30, has the right look of a significant low that completed a major bear phase.
On April 22, 2025, I posted the following analysis about my technical setup work in XBI (SPDR SP Biotech ETF):XBI (SPDR SP Biotech ETF)-- Could it be? Could it be that the near-40% correction from the 11/11/24 multi-year high at 105.47 to the 4/09/25 low at 66.66 fully discounted all the bad news in this sector? From a BIG Picture perspective, my attached Daily Chart shows this month's spike low into the vicinity of the previous major corrective low-zone starting in May 2022.
In the early afternoon on April 11, this was my note to our members:"IBIT (iShares Bitcoin Trust ETF)-- From a trading perspective, anyone who is in sync with the Bitcoin setup might consider owning IBIT (iShares Bitcoin ETF) against a stop below its 4/07/25 low at 42.98 (see my attached Daily Chart below)...
