EA, TWLO updates 03/21

EA: is getting close to its ideal target of low- to mid-130s. The daily chart shows a potential rising wedge is forming, which often happens in a 5th wave. The short term count is a nice 5 wave impulse up off the red intermediate-iv low, and question is now if all of (minor) 5 already completed or if we can see price move higher a bit more to the $132-$134 target zone. Longs should be careful here as a break below the lower trendline will signal major-3 has completed. Note the negative divergences on the daily and weekly Technical Indicators. Now divergence is only divergence till it isn’t, but it fits with the wave-count. I expect wave-4 to retrace 38.2% of major-3: back to the low-100s ($105ish)

EA DAILY

EA Monthly

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TWLO: Fast approaching its 161.8x extension at $42.50, which is a typical 3rd-wave extension, but with negative divergence starting to build on the daily Technical Indicators and overbought conditions on the weekly. Although further extensions can never be predicted before hand, a relapse for wave-iv to the “resistance turned support” zone at $35ish cannot be excluded before a next rally for wave-v takes place to $47ish. (see red-arrow-path). Overlap from here on forward with the red “i/a” high made in August last year means there were only 3-waves up and the a/b/c labeling is than operable. Thus watch it closely. Longs can set a trailing stop at the 20d SMA. Note how the $47 projections targets the simple symmetry breakout level (orange arrows) in the weekly chart @ $46 perfectly. And note how the anticipated retrace to $35ish fits also with the symmetry levels. If you haven’t longed TWLO yet, I’d suggest to wait till it’s at $37/$36 and then one can buy. Downside risk is at $1-$2 and upside potential is $10+. That’s a seriously good risk/reward setup imho.

TWLOTWLO2