Extreme Trades for the Week of July 30, 2018August 2, 2018
Two of the most beaten up names on the Street are Facebook (FB) and Twitter (TWTR).
Now that most of the bad news has been priced into both stocks, it’s time to take a position. We believe both can refill their bearish gaps, near-term.+
Not only is TWTR now at its lower Bollinger Band with oversold reads on RSI, MACD and Williams’ %R, there’s a double doji cross at bottom of trend, which is a bullish reversal indictor. We got further confirmation of trend change today with a 62-cent move higher. We’d like to see a gap fill around $43. Let’s pick up the TWTR September 21, 2018 33 calls at market. Also, buy the TWTR stock at market prices.
We also want to take a small position in Facebook (FB). It’s aggressively oversold and has provided us with confirmation of likely trend change. We’d like to see a gap fill around $220, near-term. Buy to open the FB September 21, 2018 180 calls at market, as well. It’s also oversold at its lower Bollinger Band with oversold over-extensions on RSI, MACD and Williams’ %R.