Trading Pro: Here's Why I Just Bought Twitter

Shares of Twitter, Inc. TWTR plummeted by more than eight percent by mid-Wednesday afternoon, but one professional trader took the opportunity to buy the dip. Serge Berger, also known as "The Steady Trader" told Benzinga that he saw a "host of funds" liquidating speculative positions in shares of Twitter on Wednesday due to the volatility stemming from the earnings leak. He added that the leak, more so than the earnings miss, looks to have caused "the rumbles." Berger continued that Twitter shares were still holding within Wednesday's "mini crash" trading range during Wednesday's morning trading session and holding at a higher low versus the late 2014 lows and has also fully filled the up-gap from its February earnings. "I don't think Twitter will recapture its recent highs in the near-term but a reflex rally of five percent to 10 percent looks probable from current levels given the sequence of events late Tuesday," the trading pro argued. Finally, Berger placed a $45 price target on shares but also noted he will determine an appropriate stop by the end of Wednesday's trading session.