Twitter Inc Stock Code TWTR.NYS
Outlook
After 3 days of testing the edge of the cloud, price closed below the cloud last night. This could signal the start of a downtrend. There is a support at a previous low which will need to break for the downtrend to prevail. This support also comes in together with a 6 months uptrend line. If price moves below both lines, it could be a very strong sell signal. Both Conversion and Base lines already had a bearish crossover earlier before price closed below the cloud. MACD line has moved below the zero line and is bearish. MACD line is also moving lower hinting of more price declines ahead.
Strategy
$34.94 Short Sell
$30.64 Price Target
$36.80 Risk Management Stop
3 weeks Trade Duration
Caterpillar Inc Stock Code CAT.NYS
Outlook
Price moved out of the cloud 3 days ago and last night, it managed to move higher than the high while inside the cloud. Price has now closed above the cloud for 3 consecutive days. Both Base and Conversion lines had a bullish crossover earlier and price is above both lines and the cloud. MACD is bullish and has been moving higher. There was a MACD divergence warning when price reached the low at 118.74.
Strategy
$134.70 Buy
$140.90 Price Target
$131.20 Risk Management Stop
3 weeks Trade Duration
