While reviewing a chart of Twitter (TWTR) Wednesday afternoon, I began to wonder whether the apparent dash for trash might drag this beaten-down name through its 50-day simple moving average and resistance near $19. A sustained trade above $19 could potentially put $22.75 and $25 on the table. A close under $17.50 would have me tossing TWTR back in the recycle bin.
Energy traders caught a break with the Energy Select Sector SPDR (XLE) pushing through $58 during Wednesday's session. Keeping in mind another collapse in crude will weigh heavily on XLE, moves toward $60.50 and $63 now seem plausible. Do note the resistance near $60.50 is thick, and not something I'd expect to be cleared on the first attempt.
I'm concerned that nearly everything advanced on Wednesday. Equities, bonds, gold and crude oil all closed in the black. With equity markets extended, an undeniable dash for heavily shorted trash -- stocks like Chesapeake Energy (CHK) and Freeport-McMoRan (FCX) -- and the monthly payroll data scheduled for Friday morning, my guess is the path of least resistance is lower over the short term.
Shares of Silver Standard Resources (SSRI) have been churning between $5.5 and $6 for roughly three weeks. While the stock is very volatile on a day-to-day basis, it appears ready to break free from its $0.50 range, and extend toward $6.7-$6.9.
Any trading or volume profile related questions can be posted in the comments section below, emailed to me at firstname.lastname@example.org or posted to my twitter feed @ByrneRWS.