$TWTR momentum in the last month has been killed due to recent earnings disappointment. However, the strength it showed early on this year was quite impressive and leads me to believe this stock will continue higher in the upcoming months. Right now, Twitter's chart is hinting a big move coming, as the Bollinger Bands are tightening (shown in red). When Bollinger Bands start to tighten its usually a sign that a big move is likely to occur. The reason why I think this big move is higher rather than lower is because Twitter is dangerously close to its lower Bollinger Band, and in the past when it was below (shown in black arrow), it ended up bouncing hard. When a stock's price is below the lower Bollinger Band or near it, it tends to bounce upwards, especially when the overall Market is extremely bullish.
Saturday, March 1, 2014
Monday, February 17, 2014
Tesla's has had a great few weeks, making new all time highs this last week. Tesla announces earnings this week. I am curious to see what the majority of people think how Tesla will react to earnings, let me know in the poll below:
Saturday, February 1, 2014
When the McClellan Oscillator is overbought with a complex structure (being above 0 for several days), its foreshadowing future strength in the Market. The McClellan Oscillator had built one of the strongest complex structures above 0 that I have seen in over a year (refer to the chart below). Currently the McClellan Oscillator is working off this overbought structure (hitting oversold levels twice so far). The Market is highly likely to retest/make new highs. The timeframe for such a call ranges from now to a month and a half.