From loved to hated, then back to loved, this is where it ends for
Twitter Inc (NYSE:TWTR)...
The key number is, $57.64. You may be wondering, why $57.64? Well,
after reporting earnings on July 29th, Twitter Inc (NYSE:TWTR)
triggered a bullish pattern, known as an inverse Head and Shoulders
bottom, by gapping above the thick grey line seen in the chart
below. The upside target for this bullish formation match perfectly
with a major technical level of resistance; which makes this level
a very powerful resistance area for Twitter Inc (NYSE:TWTR).
If you look at the TWTR chart a little closer, you will notice that
the $57.64 area was a battle ground for bulls and bears during late
2013, and early 2014. Notice how the stock came right into this
area of resistance in late 2013 (highlighted by grey oval). It took
Twitter Inc (NYSE:TWTR) a few days to be able to break above this
area. Once above, institutions defended this area, which became
support for Twitter Inc (NYSE:TWTR) as denoted by the two white
arrows.
This battle ground area around the $57.64 (thin red line) level,
was only breached by a massive gap down on the back of a
disappointing earnings report. But about a week later the Twitter
stock bulls made a charge and tried to push back above the $57.64
area. However, at this time bears had the upper hand, and Twitter
Inc (NYSE:TWTR) was quickly rejected as old support levels once
broken, become solid resistance levels.
Now, as Twitter Inc (NYSE:TWTR) bulls make yet another charge
towards this level, technical analysis suggests that the bears will
once again have the upper hand. Twitter Inc (NYSE:TWTR) stock will
be quickly rejected, offering a perfect opportunity for
traders/investors to short the stock and profit as it falls.
For this level to be even more effective, Twitter Inc (NYSE:TWTR)
must reach it within the next couple of weeks, and not confirm
above it.
Kiliam Lopez
InTheMoneyStocks