Anthony Speciale Stock Market Analyst

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The Twitter Trade That Could’ve Been… Thanks To Elon Musk

We’ve all heard or read the headlines about the wealthiest man in the world, Elon Musk, buying a 9% stake in Twitter (TWTR).

We’ve all heard or read the headlines about the wealthiest man in the world, Elon Musk, buying a 9% stake in Twitter (TWTR) and declaring his role in the company as “active.”

He owns more of the company than even co-founder Jack Dorsey.

So, what’s Elon’s plan? That’s yet to be seen, but we know he takes freedom of speech seriously.

Elon’s Next Move

I suppose we’ll see if anyone who’s been banned from the platform gets invited back.

That should be interesting… Be prepared to see heads explode if that transpires.

But here or there, what matters to us as traders? Was there or is there an opportunity for us to profit from this situation?

In my eyes, there was a great trade triggered approximately 13 trading days prior to the news hitting the headlines.

Full disclosure, I was not watching Twitter at that time. It was not on my radar at all, as it had been showing slow, declining trickles of price action and enough action to even consider trading.

But as I usually do, I have my longer-term analysis on big name stocks.

The Technical Picture

When I went back to the chart, I simply just needed to tighten up the recent price action to determine if there was or is an opportunity.

Daily Chart of Twitter (TWTR) — Source: TradingView

On March 16, price action confirmed a daily settlement breakout 1%+ beyond the resistance structure it was testing.

I would’ve advised a buy-up-to price of $35.50 with a protective stop placed at $33.00, risking approximately 7% to see if I was right or not.

I would’ve set my initial target at the $44.00 descending resistance channel, 1%+ at my target, so right in the neighborhood of $43.50.

That would have offered me the potential to profit up to 22.5%. As time moved on, I would’ve had to reduce my target on a daily basis.

In doing so, on April 4 when the market gapped over my what would’ve been adjusted limit order target at $41.00, it would’ve been filled at the gapped open price at $47.87.

So, while risking 7% on my stop and having a profit target with 15% of reward (It would’ve made me wildly happy to make 15% in 13 days), that gap turned out to have offered much more.

In fact, it offered approximately 34.75%, which is more than DOUBLE what was anticipated at the April 4 target.

Again, I wasn’t watching this. But off the existing analysis I had on Twitter’s chart, had I been watching, it would’ve yielded the scenario pictured above.

Take the Next Step

This is the same technical approach I’ve been using to trade crude oil personally for over a decade.

If you’d like to learn more about my approach, I highly encourage you to check out my premium trading service, The Speciale Report, which focuses exclusively on the crude oil markets.

We trade it in the futures, ETF and options markets, all of which give members the opportunity to trade at their comfort level.

That’s the beauty of The Speciale Report’s trade ideas… We accommodate all styles of traders. There’s really something for everyone.

If you’d like to learn more about the opportunities the energy sector offers, please feel free to check out The Speciale Report by clicking here!

Rules to Live By

“If you can’t fly then run, if you can’t run then walk, if you can’t walk then crawl, but whatever you do, you have to keep moving forward.” Martin Luther King Jr.

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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One Reply to “The Twitter Trade That Could’ve Been… Thanks To Elon Musk”

  1. Thank. You. Feed. Back

    Reply

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