FIT, TSLA, TWTR updates 12/13

FIT: In the late-November update (see here) I wasn’t sure about the price pattern because of the five-wave decline into the early-November low and said that I needed to first see 5-waves up. Well we got those and that prompted me to re-assess everything we know. What I think is transpiring is a LDT for wave i/a, then an irregular wave ii/b, and now a 5-wave c-wave where c=a, or that was wave 1 of iii. A break below the November low means the a,b,c count is active, whereas a retrace to around the 50d SMA and then a launch over yesterday’s high place the impulse count front and center. Hence, I must admit I have not enough price data yet to determine, which is which, but there is now enough price data to suggest either or, and everything now makes more sense than 2 weeks ago.

fit daily

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TSLA: Has two options. Either major-4 is in, or it is still underway with a bounce currently underway. Both see more upside from current price, but the latter count is limited. The first option is shown below where price bottomed at around the ideal 305 target zone and is now longer term underway to around $410.

TSLA daily

The 2nd option is a b-wave bounce to around $350-360 before  c-wave takes price down to around $270. Note that the $350-360 zone is prior resistance as well (wave-ii high) and (wave-a high). Thus if one is even betting on the first count, taking some longs off the table in the target zone, say 1/2 your position size, and then moving stops to above entry will still pay handsomely, especially if you remember you are in this market to make profits. Period.

TSLA daily alt

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TWTR: My preferred count remains that it is now in minor-5 of intermediate-iii target $23 at a minimum and $25 ideally. Lots and lots of call buying past few days. Often those (big boys) are not wrong. The weekly chart below shows the path forward for TWTR longer term, to complete blue primary I.

TWTR daily

Note the breakout in October above the longer term downtrend line. That’s significant and so far price has moved higher. All the TIs are moving higher, the On Balance Volume is increasing (also on the daily; see above); meaning money is flowing into the stock.

TWTR Weekly