A short-term trade from an earning diaster

Twitter (TWTR) used to be a darling of the Street. But since its IPO a little more than 2 years ago, its share price has been haircut for about 80%. Although it has called back its founder as the current CEO in trying to revive itself, it is still struggling to survive. While Twitter has been widely used on a daily basis, unfortunately it just cannot monetize its application. Yesterday, TWTR announced another huge miss in earnings. Again, its stock witnessed a free fall today, declining by 16%. But this crash is actually creating a technical trading opportunity. As shown below, TWTR is basically testing its Feb low, dipping below the lower BB and becomes oversold. This plunge creates a strong positive momentum divergence in MACD. This suggests today's decline may likely be short-lived and a change of the trend may follow soon. If I'm right, TWTR should start to move up soon and this should be a good short-term opportunity to bet for the long side for TWTR. Of course, let's be very clear, I still don't think Twitter has turned around as a business and more downside is very likely in the long run. This is just a speculative short-term trading for a couple of weeks at most.