Twitter ($TWTR) is again forming a nice base on its chart. The prior two bases formed have led to gains for investors. The first base was at the bottom of its falling wedge pattern. The second base was formed after its breakout from the falling wedge, right before earnings. The stock got hot fast and did not have a chance to fulfill its chances to the upside. Now a third base is possibly appearing. I highlighted the chart to show the similarities from the prior bases.
Twitter is currently under pressure from all of its moving averages. While this can pose a serious threat of this moving down further, the base pattern could withstand the pressure. I am looking for this to first clear its 20 day moving average. The death cross is getting closer to form but as long as this can start to move upward, it can pierce through the 200 day moving average. All of the indicators are giving a great chance for this base to start another run to 50 and perhaps beyond.
