TSLA: Saw some good price action today on increased sales, but found resistance at the cluster of 50 to 150d SMAs as well. It needs to overcome these SMA to target the $220s. The count reflects either a large ongoing correction or renewed bull. Break above the “1/b” labeled high will confirm the latter and will turn the red “b” into a i, and the september low into a “ii”. For now price is causing the bollinger bands to expand and thus has strength. The TIs are pointing up, wanting to see higher prices as well.
TWTR: Buy out rumors abundant and the stock is rallying. Either we’re dealing with a 3-wave counter trend rally which should target $27-$29, or we’ll see 5 waves up ideally targeting $30-$32. It is too early to tell. Hence, why most investors only trade to the 3rd wave – just to be sure. The bollinger bands are firmly expanding -two day candlestick chart shown- and all daily TIs are pointing up (not shown): hence price has strength and wants to see higher highs. In line with our count.