This year we’ve seen a wide variety of Stage 2 breakouts in cannabis, technology, and Chinese stocks but a lot of the action occurred strictly in January. The last couple months I’ve seen few new breakouts, many failed breakouts, and a lot of stocks consolidating sideways. Things might change rapidly with earnings season now upon us, and one stock that exploded today with what looks like a new Stage 2 breakout is Twitter (TWTR).
TWTR is in a strong sector with other social media stocks like FB and SNAP in new uptrends. There is some overhead resistance from a previous earnings related breakdown in July 2018, but that’s the only recent resistance. I will be watching the volume for the rest of this week and next week to see how much demand is out there for the stock now that it has broken out. I took a position today in TWTR in the high 30s on this breakout.
Disclosure: I am long TWTR.
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