Twitter Positioned to Trade Higher

 | Feb 14, 2018 | 12:25 PM EST
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Twitter (TWTR) was reviewed recently as its strong upside price gap generated attention , and I gave this strategy: "TWTR is likely to see some consolidative/sideways trading in the next few days as traders and investors digest these sharp gains. The $42 area is still our price target from a Point and Figure chart." TWTR spent just a couple days trading sideways and today it looks like it is resuming its uptrend. Let's check the latest charts and indicators for a fresh plan or strategy.

In this updated daily bar chart of TWTR, below, we can see that our favorite technical studies are all in a bullish alignment. TWTR is above the rising 50-day moving average line and the rising 200-day line. The daily On-Balance-Volume (OBV) line has moved up to its own new high to confirm the new price highs. The Moving Average Convergence Divergence (MACD) oscillator is rising strongly above the zero line -- another confirmation of the price strength.

This weekly bar chart of TWTR, below, continues to support the advance with bullish technical signals. Prices remain well above the rising 40-week moving average line. The weekly OBV line has been strong since early August and tells us that buyers of TWTR have been more aggressive. The weekly MACD oscillator is in a bullish mode.

In this Point and Figure chart of TWTR, below, we can see the advance from the mid-teens to the mid-thirties. Prices have been correcting the strong gains by trading sideways. An upside price target of $36.76 is shown.

Bottom line -- TWTR continues to trade firm and we should raise our targets. TWTR could reach the $36 area with $45 the next upside price target after that milestone. A close below $28 could mark a reversal.

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