The Stage for Twitter to Erupt

Consistent with some of the comebacks we have seen of late from multi-year laggards, such as CREE HZNP M SHAK VRX, among others, it figures that Twitter's stock would be pushing fourteen month highs this morning when plenty of action traders are either focused on Christmas shopping, cryptocurrencies (or commingling both). 

TWTR has been a heartbreaker for the longest time to longs who adopted a buy-and-hold strategy in the name prematurely, complacently assuming that Wall Street would look beyond glaring issues the firm was having as mere hiccups relative to the broader social media landscape.

But when Wall Street is not in love with a name, flaws become magnified and it is tough to break out of a rut. 

Still, TWTR has been steadily improving since last April/May, again threatening to confirm a major bottom with a bit more strength into year-end and perhaps beyond.

On the update daily chart, below, TWTR still has an open gap above, at $24.13, from October 2016. I suspect we do indeed fill that gap sooner than later, and then must reassess the action to see if bulls can keep supporting dips. 

Interestingly, above that area, which marked the scene of where TWTR's young management dropped the ball on a very public takeover interview process, and we could have an eruption on our hands into the $30s. 

First things first, though, and TWTR must contend with some of the skeletons in its closet from 2016 in the form of likely overhead supply before we can look forward to a new bull run un 2018. 

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