TWTR (Long/30.00 Stop) - Twitter found a base in the mid 40's a few week after going public in November of last year before it took off sharply into the low 70's. It then consolidated for a few weeks, formed a bear flag, spiked lower, and has traded in a bear channel ever since. In mid April the bulls made a failed attempt to reverse the bear trend which sent the stock tumbling, for the first time, below the IPO range.
What make Twitter so appealing at current levels is that the selloff during the week of May 5th was on volume of just under 300m shares which was the largest recorded volume week for Twitter. What makes this so significant is that where and when this happened on the chart is indicative of what is known in the industry as "exhaustion selling" which usually defines the area of a bottom and reversal.
Since the exhaustive selling we have seen two weeks of consolidation and two weeks of accumulation on heavy volume. If one was going to get involved with Twitter on the long side this would be the ideal area to do so because the downside risk is approximately three points and your upside could be many times more.