Twitter (TWTR) on the Rise
Twitter recently broke above its descending resistance line. It closed down last Wednesday and Thursday and held above the resistance line both times (presumptive support).
While this looks like a potential trade setup (50/50 Low Riser), there is one problem. TWTR reports earnings on 26 July. That gives only 9 trading sessions before the stock might gap up or "down."
Generally, it is risky to buy a stock as a "trend" trade within a month of its earnings report. There isn't enough time to create a profit cushion to offset a potential gap down.
Note that the 10-SMA just crossed above the 50-EMA, and the 20-RSI crossed above the 50 level (into the strong zone). These two events support the break above the resistance line, and further upside could follow.
The pattern might be traded as a swing trade, or by using options to minimize the risk of a gap down at earnings.
For a trend trade, it is generally better to wait for the earnings to be reported and reassess the stock's price action for a potential trade.