TWLO: A Deep Dive Using My Unique Tools
TWLO is one of my 4 Horseman in the growth glamours that Hit & Run traffics in.
The following daily for 2021 shows how valuable my 3 Day Chart method is for determining the trend and the Line of Least Resistance.
In late January, TWLO turned its 3 Day Chart down hard.
This occurs when a stock makes 3 consecutive lower daily lows (intraday, not closes).
When a strongly trending stock does this for the first time in a while, it's usually (not always) a nice buying opportunity.
In this instance, it pinpointed the start of a runaway move from 320 to 441 in just 10 days!
Remarkable.
However, on February 18, TWLO gapped up to a new high following a 2 day pullback. But instead of signaling a new run higher, TWLO tailed off closing at/near session lows.
This is my Gilligan sell signal — a gap up to a new 60 day high with a close at/near session lows.
Gilligans do a good job of defining short term exhaustion which sometimes marks important turns.
The next day TWLO gapped down, leaving an Island Top.
TWLO was talking for those that had ears to listen.
Indeed, the gap down resulted in TWLO turning its 3 Day Chart back down.
Notice that TWLO has not turned its 3 Day Chart back up since that turndown on Feb 23 and here we are 5 weeks later.
You think my 3 Day Chart Method reveals the Line of Least Resistance perhaps?
The takeaway is that every rally that occurred while TWLO’s 3 Day Chart continued to point down was a selling opportunity.
When TWLO snapped back to a Bowtie of its 50/20 day moving averages in mid-March we flagged it as a selling opportunity on the Hit & Run Private Twitter.
Importantly, TWLO carved out a Large Range Outside Up Day on 3/17 closing above its 50 day line.
However, it never followed through.
Follow-through is key.
Instead, TWLO knifed back below the 3/17 reversal bar the next day, leaving a reversal of a reversal.
This is what I refer to as a Keyser Soze (from the movie The Usual Suspects).
Fast moves come from false moves and the Keyser pulled the plug on TWLO bigly.
In sum, a Square of 9 below shows that 2 squares (360 X 2 or 720 degrees) down from the 457 high is 303.
TWLO may set up a buy near 303.
99.999% of traders have never even seen the Square of 9... let alone understand its potential.
Do you dare to be different?
