Pedone: Twitter, Alibaba Are 'Solid' Setups

Technical analyst and independent trader Roberto Pedone recently mentioned a few stocks he is watching.

Twitter

Pedone thinks Twitter Inc (NYSE: 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.”

Related Link: 9 Stocks This Technician Is Watching

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 Pedone’s watchlist is Alibaba Group Holding Ltd (NYSE: 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 says Alibaba and Twitter as “great options candidates as well as solid higher-priced setups.”