We have reviewed the charts of Twitter Inc. (TWTR) a number of times over the past few years and I doubt I have been that successful in my forecasts. Let's just bury those mistakes and check out the latest charts of TWTR following its earnings report.
In this daily bar chart of TWTR, below, we can see that the shares have retraced their February-March losses and are making new highs for the move up. Prices are above the rising 50-day moving average line and above the still declining 200-day line. The 50-day line has crossed above the 200-day line for a bullish golden cross.
The On-Balance-Volume (OBV) line has moved up to a new and bullish high and tells us that buyers of TWTR are more aggressive despite some of the newsflow about the company. The Moving Average Convergence Divergence (MACD) oscillator is bullish.
In the weekly bar chart of TWTR, below, we can see that prices have been in a long-term downward-sloping channel. Recently prices moved above the bottoming 40-week moving average line.
The weekly OBV line has been amazingly steady during this entire downward sloping channel. Investors in this time frame seem to have deep pockets and high expectations for the future.
The MACD oscillator is crossing the zero line for an outright buy signal.
In this Point and Figure chart of TWTR, below, we can see an upside price target of $53.
Bottom-line strategy: Third time's the charm? Aggressive traders could go long TWTR at current levels risking a close below $34. The $53 area is our price target.