MU, SNAP, TWTR updates 03/20

MU: This has been a monster stock going well-beyond initial expectations. I’ve revised my count and see an important target zone right at the $65 level. It is the 1.618x extension of (black) major-1/a, from b/2, and the 1.618x extension of (red) intermediate i/a, measured from b/ii. Since MU has moved in 3s all the time I prefer to continue to count it in 3s. BUT, it is possible that since the Cycle-2 low this has changed and MU is now moving in 5s. Regardless, the monthly TIs are still all pointing up (RSI5, A.I., MACD) and only the MFI14 is starting to diverge negatively. Thus is seems that once $65ish has been reached we may see a fall-back to around $45 for a possible 4th wave and than another rally to complete 5 up, possible as high as the 2.000x extension @ $79. For now, longs should start to look for the $65 region and a strong reversal to indicate it’s time to scale out.

MU monthly

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SNAP: Social media stocks are taking a hit thanks to FB’s data-breach. What I see transpire in SNAP is a B-wave up, which retraced almost a picture perfect 61.8% of the prior A-wave down, and now a final C-wave down, to ideally the 76.40% retrace at $9ish to complete Cycle-2. Price has broken below initial support (orange lines) and is gunning for 200d SMA support. Given how oversold it’s getting this may hold for a bounce. Other than that, all TIs are pointing down wanting to see lower prices. The Bullish alternative is a set of 1st and 2nd waves off the November low. But I find it less likely. I can’t recommend going long SNAP, unless for a quick possible bounce-play, and unless from here it does NOT break below late-January low but rallies back above the early February high (@21.25). That would indicate wave 3 of 3 is underway.

SNAP daily

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TWTR: Looks like intermediate-iii of major-3 topped (thanks FB 😉 ) and intermediate-iv is now underway. Should find support at the 38.2% retrace level, which coincides with the February break away gap: $30-$29. If that doesn’t hold than we should expect gap-fill at $27-26. Hence, if one decides to long TWTR in the $30-29 zone, than downside risk is $3-4, while upside potential is $10-12. That’s a great risk/reward IMHO. If you are already long TWTR from much lower levels, one can stay long until it breaks below say the 200d SMA. KISS!!

TWTR daily