A Merry Christmas to Those Riding Twitter's Coattails

Although Twitter's stock caught a strong upgrade from JPM this morning, with the large bank calling the bird one of its top long ideas for 2018, the real news seems to be Bloomberg and Twitter launching the first-ever 24/7 global social news network, with Bloomberg making a more comprehensive push to beat its rivals on Twitter's platform. 

As we know, TWTR's flaws have been, as property lawyers would say, "open and notorious," for a good while now, as both the price action and bearish analysis proved to be too much for longs to overcome.

However, as we have noted here and for Members for several months now, TWTR's technicals have steadily improved, like it or not. Even though we know TWTR's managerial decision making likely needs to improve further, the platform itself is a winner, as is the strength of the brand for news outlets and celebrities--It simply is what it is, and helped contribute to getting the latest President elected. 

Thus, the template seems to be in place for TWTR to continue to surprise to the upside, given the strength of their platform. An appropriate analogy would be think of TWTR as a wildly talented sports team in need of better coaching and tactical decision making. Once it gets that, the team becomes championship-caliber. 

On the TWTR daily chart, updated below, we had a gap-fill nearly to the penny to the October 2016 open gap where, incidentally, TWTR's management botched a rather obvious takeover talk process. 

This time around, the firm seems a bit more seasoned in making deals. And if the stock can negotiate the mid-$20s in the coming weeks, it may very well set up a strong 2018 for a stock going on more than two years now of being dead money after its post-IPO swoon starting in 2014. 

That is quite a long time to go with the market harping on the bad news. But now TWTR is presenting good news just as the buried longs from years ago lost their enthusiasm to cheer on the latest rally, a contrarian bullish sign going forward, to boot.