Twitter Inc $TWTR just completed a double-bottom reversal from a bear market

Twitter Inc (TWTR) — Since its IPO in November 2013, this leading social media company has seen revenues more than double while earnings have gone from a loss of $3.41 per share to an estimated profit of $0.34 this year.
S&P Capital IQ Equity Research estimates Twitter’s advertising revenues will grow 58% in 2015 and another 44% in 2016, with an additional contribution from licensing revenues.
Its analysts upgraded their opinion of TWTR stock to “strong buy” from “buy” in July and have a 12-month price target of $44. They noted strong insider buying and an expanded partnership with the NFL as positives.
On Tuesday, it was reported that Saudi Arabian prince Alwaleed bin Talal and his investment firm Kingdom Holding Company increased their stake in Twitter to over 5%, or roughly 35 million shares. TWTR stock rallied 8% on the day.
Then, on Wednesday, shares jumped above $30, completing a “W” double-bottom reversal from a bear market that began in late April at over $55.
My proprietary indicator, the Collins-Bollinger Reversal (CBR), flashed a buy signal last week at about $24. And a MACD buy signal was triggered on Wednesday when TWTR stock broke up through its 50-day moving average at $27.35. Higher-than-average volume accompanied the breakout.
Buy TWTR stock at $27 with a price target of $38 for a potential return of more than 40%. Aggressive buyers could purchase above $30 but they should expect high volatility to bounce the shares between $32 and $26. However, given the better-than-average long-term potential, investors may want to buy TWTR stock with a higher limit order.