Musk tells Twitter NO, stock drops 5%!
The only reason I am sharing twitter and even looking into an individual stock is because it is a part of the NASDAQ and that is something I trade, while at Fondex we can trade Twitter individually I see no reason to give up so much of my margin on it when I can rock the NASDAQ.
Anyhow, heading right into this post.
chart link: https://www.tradingview.com/x/yc18pRrI/
First lets kick of with 3 key fundamental points from the news that hit the markets regarding Elon Musk and Twitter ($TWTR) :
Billionaire Elon Musk wants to end his $44 billion deal to buy Twitter .
Musk’s lawyer claimed Twitter failed to comply with its obligations in the merger agreement.
Twitter’s board chair Bret Taylor said the company is still committed to closing the deal at the agreed-upon price and plans to pursue legal action to enforce the agreement.
Now if you ask me, fundamentally this looks horrible for Twitter, so I suppose that that we could only see bearish pressure come Monday. Furthermore, the overall market is super bearish right now and things look to only get worse and worse not only for Twitter, but for many market participants.
If we take a look at the technical analysis of Twitter (chart above) it doesn't look too good either, with a failed bullish push in recent weeks being completely killed of and the recent price action forming 2x lower highs in a short period of time, to be this looks super bearish and add the fact of the above points and you have a super short opportunity!
Now remember, I am a day trader... there's no way I am looking to hold onto any trade longer than today, the only thing this weekly chart does is tell me to be more ready to sell than to buy, yet I'll be ready to do both no matter what as one of my main trading rules are to follow price action and don't fall in love with any direction.
Going back to the technical analysis again, we see the All time highs being killed off completely and actually forming a LOWER HIGH on the weekly chart, ATH was established in July 2021 yet it clearly formed a lower high on the weekly as you can see on this line chart. While we are at line charts, I prefer them for market direction because they tell me where price action is closing.
Anyhow, I don't want to rumble much more, I'm very interested in trading liquid assets and Twitter + NASDAQ will surely be liquid this week so I am as excited as Borat was when he visited America!
Look forward to great success (edited)