The internet sector has been led by its generals FB and AMZN for sometime now as it hovers near all time highs. Others like GOOGL seem to be weakening somewhat as it trades between the round 700 and 800 figures. Other “old tech” names in the group like AKAM and RAX are off 30 and 39% from their respective 52 week highs. The internets themselves are not a big subsector of tech, like software or semiconductors, but if they can catch a bid it would obviously be welcome news for Nasdaq bulls. Below we look at a past and present view of TWTR, which is 61% off recent 52 week highs, from a candlestick and price standpoint. If anyone would like a full copy of Mondays Game Plan please email me at chartsmarterblog@gmail.com.
Stocks that can be bought after putting in double bottoms are TWTR. TWTR is a tech laggard down 38% YTD and 62% over last one year period. Earnings have been disastrous with 5 consecutive negative earnings reactions lower by 16.3, 4.5, 1.5, 14.5 and 18.2% on 4/27, 2/11, 10/28, 7/29 and 4/28/15. It is on a current 3 week losing streak falling % this week, after a slump of 15.1% the week prior does not inspire confidence. It has however made a double bottom just below the 14 handle with some bullish candlestick patterns between this February and this week (to be fair it did record a bearish dark cloud cover Thursday, but they are effective at market tops) and lets look to enter here on the retest of the bullish engulfing candle on Wednesday on a weak market tape that day. Tight stop as a CLOSE below 13.75 would put stock on path to single digits.