Swing Trader: Twitter Headed For Large Move Following Earnings
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According to swing trader Justin Pulitzer, Twitter Inc (NYSE: TWTR) can and will see an outsized move following earnings. He sees the stock heading towards $29 or $25 on a negative print or towards $48 and above for a positive quarter. At $29, he calls Twitter a screaming buy.
At current prices, Pulitzer notes that Twitter is relatively expensive. However in relation to other companies in the space, it’s not. If traders want an earnings play, he recommends neutral option spreads. Support, he notes, is at $35 and $29, while resistance is at $44 and $48.
He generally thinks that Twitter has a compelling business model and will move higher when it proves to the Street that it can monetize, but the bullish sentiment in the stock does concern him. He notes that much of the sentiment is from traders underwater in the trade, which means that it has not seen a capitulation low.
Once Twitter proves its business model and solidifies its position as the new news media, it will get the respect it deserves from investors, he said.
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