TWTR update 10/26

With TWTR rallying hard on it’s earnings release from this morning and surpassing my price targets set for a bearish out come, I have to admit my count was wrong and I had to re-analyze the charts. My apologize, but it is impossible to get it right all the time. Nonetheless, now that there’s more clarity we can be more certain of being on the right side of the trade/trend and that’s where the real money is made. In this case 3rd of 3rd waves.

The daily chart below show’s the detailed count off the April low. Price is now in (grey) minute-iii of (green) minor-3 of (red) intermediate-iii of (black) major-3. This is the most powerful wave, the money maker. Here you can see what threw me off: the irregular intermediate-ii wave, where (green) minor-b traded over (red) intermediate-i. Not shown here, but in the weekly chart, also major-2 did the same. Very tricky…

TWTR daily

The weekly chart below shows the big picture count, and also the irregular major-2 (consisting of the red intermediate-a and b waves, with b going above major-1). Price targets for intermediate-iii, iv and major-3, 4, 5 are given and based on standard/ideal Fib-extensions: ~$23, $21, $25/26, $22, $30 (all +/- $2); respectively. Please note that waves can extend, but I can’t foresee that. In addition, the final price ($30 +/- 2) will complete (blue) Primary I and we should see a deep retrace for Primary II before Primary III takes hold and likely rockets price to new ATHs; if not to ~$52.5ish. The horizontal lines show resistance levels, which conform well with the price targets. Also, price broke above the red downtrend line, which has held price in check since October last year.

TWTR Weekly