Nothing Like A Double Or Triple Bottom To Go Long Twitter
Twitter Inc (NYSE: TWTR) shares are trading higher by $0.65 (5 percnet) at $14.66 in Wednesday's session. Despite a red tape, the issue is posting nearly 5 percent gain.
The issue is now poised to end its five-day winning streak that began on April 27, when it swooned from $17.75 to $14.86 following its Q1 report.
However, the move may be only based on a technical bounce. One trader fortunate enough to catch the bounce was Dennis Dick, co-host Benzinga's PreMarket Prep. A long-time bear on the issue, he couldn't ignore the technical set-up that was presented to him in today's session. He had been keying on its all-time low that was made after its Q4 report at $13.90 since its disappointing Q1 report.
Dick stated, "It matched its all-time low on Tuesday, and by purchasing shares off the opening print ($13.94), I new that I had to cut out of the trade of the the all-time low was breached."
As it turns out, that low was never breached and Dick decided to lighten up position on the way up. At this time, he is still holding part of the position, cautiously moving his stop higher and higher in order to stay in the trade if indeed the issue has made a long-term bottom.
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