Stocks Trading Idea TWTR
Using the Trade Ideas scan called Trend Reversal Up, we have isolated a good technical risk reward chart in Twitter Inc. (TWTR). The Trend Reversal scan looks for good risk/reward situations where stocks are basing and looking to move up while building higher lows off the base patterns. The upside gap lurking just above 17.60 is a point of interest for the Trade of the Week.
The Trade of the Week on TWTR is conditional of a trade above 17.60 to go live this week.
As you can see in the chart below, there is a nice void to fill from the recent gap down after the last earnings report. The suggested stop for this position will be 16.35 and the suggested target will be 20.80. Risking 1.25 to make around 4.00 is a good position trade risk/reward anytime.
Footnote: This is a table showing the maximum profit for past 2017 Trades of the Week. Timing the top is impossible but this table shows how much alpha was possible when considering your personal exit of these positions. The trades outlined in red eventually hit their suggested stop prices, so you can see the importance of timing and harvesting profits along the way when you can, especially those that move above 10%. We will update this table when needed to bring data more current.
Targets are not absolute. Targets involve timing. Profits can and should be harvested along the way.Risk to Reward ratio ideal is 1:3Trades of the week that do not reach entry prices are not considered live and are expired at the end of the current week. (ORCL, HLF and JNPR)
TOW Rules: 20% Rule. If a performance is up 10% and gives back 20%, take the 8 and run. (Profit Save, Trailing Stop).