Twitter, Inc TWTR has been stuck trading sideways between $58.35 and $67.45 since Aug. 6 but may be ready to finally break up bullishly and make a run for the July 23 high of $73.34.

On Tuesday, options traders continued to place bullish bets through Twitter call contracts. The traders chose strikes of between $65 and $70 and expiries ranging between Friday and Jan. 21, 2022. Together the traders bet $425,334 Twitter is headed higher.

The Twitter Chart: On Monday Twitter broke up bullishly from the neckline of a possible head-and-shoulders pattern, with the left shoulder created between Sept. 8 and Sept. 24, the head between Sept. 27 and Oct. 7, and the right shoulder formed between Oct. 8 and Oct. 15.

The measured move of the pattern, predicted by measuring the distance in percentage between the neckline and the tip of the head, is about 12%, which could boost Twitter up toward the $70 mark.

When Twitter broke up from the pattern the stock printed a big bullish engulfing candlestick on the daily chart, which indicated higher prices were likely to come and on Tuesday the stock was soaring up toward a key resistance level at the $67.45 level. Twitter attempted to break up from the level previously, on Sept. 24 but rejected and wicked from the area.

Twitter is trading above the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending above the 21-day, both of which are bullish indicators. The stock is also trading above the 50-day simple moving average, which indicates overall sentiment in Twitter is bullish.

• Bulls want to see big bullish volume push Twitter up over the key resistance level above. If Twitter can regain the level as support, momentum can drive the over psychological resistance at $70 and toward the $73.22 level.
• Bears want to Twitter reject the upper resistance level and for big bearish volume to come in and drop the stock back down toward $64.14. If Twitter is unable to hold the level as support, it could retrace further toward the $61.45 level.

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