I just saw a headline about Twitter’s poor revenue and forecast. Down over 12% in after hours. I was curious about what the chart may have looked like before the news and here it is; taken at face value it’s a decent looking potential short-term bottom.
Let’s go back in time to 3:59, and I’ll give you the chart rundown. TWTR bottomed in February and made a higher low in March. Daily MACD and RSI have moved above zero and 50 respectively and look constructive. The price is finding support at the SMA 50 and blah blah blah…
As of this moment there would be a big red candle poking down to 15.59. Pattern done, MACD and RSI soon to be done and another stock fails at earnings time. There was some pretty good volume in there today speculating that the chart might be on to something. It wasn’t. I am seeing similar things all too often lately and it works the other way too, with bearish looking things going the other way.
Keep we charties in our proper place in the ‘probabilities’ tool box. We sure know how to make simple things sound complex and we sure know how to make unpredictable things sound predictable. Healthy skepticism is another good tool for your tool box, and that goes for the fundy analysts too, not just the charties.
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