This Expert Says Twitter & Alibaba Are 'Great Options Candidates' & 'Solid Higher-Priced Setups'

Technical analyst and independent trader Roberto Pedone recently mentioned a few stocks he is watching. This article will take a look at four of them, their corresponding charts and the expert’s insight.

Twitter

Pedone thinks Twitter Inc TWTR is “overdone to the downside and setting up to bounce soon.” He says the MACD looks ready to activate a bullish crossover and the stock had “a solid volume day off a PR detailing their partnership with Google in regards to search.”

The trader sees the stock still stuck in a range around $36.50-$38.00, following the plunge experienced after earnings, and says he wants to see it close over $38 to $38.20 with volume “to signal this is ready to run to the upside.”

The analyst adds that he would also consider $39 a crucial resistance level to keep an eye on if it does go soon. “You can use $37 as support or that recent range low of $36.52. A close over $38 is what I want to see with volume to give me some confidence this is ready to go,” he concludes.

Alibaba

Another stock in Mr. Pedone’s watchlist is Alibaba Group Holding Ltd BABA. The expert says he loves the chart featured above and thinks the Chinese Internet company is setting up for a breakout play. “As long as BABA holds that gap-up low of around $85 from earlier this month, then it looks ready to go soon,” he explains. “That's your major support level, but you can use $87-$86.27 too, which are previous breakout levels. A high-volume move above $89.29 to $90 and then around $92.50 sets up BABA to fill its previous gap-down-day zone from January that started near $102.”

Bottom Line

The trader recommends Alibaba and Twitter as “great options candidates as well as solid higher-priced setups.”