Much brouhaha about the Twitter rally in the past few days has got me watching the chart quite closely. It is still in a downtrend, so I’m looking at this strength as an opportunity to get short the name. The only issue that concerns me is the chatter about Carl Icahn, though chatter is chatter and not a trade plan.
Looking at the weekly chart above, it is clear that there is definite supply from 41.27 – 43.94, and that the market is in a downtrend, making lower highs. I’ll be looking to get short into that – probably sometime next week I’d imagine. My stop is above the zone and I’ll be looking for it to print below 30. There really hasn’t been a “blow-off selloff” in this stock, so I am waiting for that before I consider getting long.