Lately, the Twitter stock (NYSE: TWTR) has not been the favourite among investors, given that the majority of tech-companies took a beating during summer time. Looking at Twitter’s price structure on the 4-hour chart, we can note that the stock broke the short-term tentative downside resistance line, drawn from the peak of the 25th of July, and continues moving sideways. To be more precise, it was the sideways price action which actually led towards the break of that downside line. For now, Twitter is stuck inside a 27.70- and 30.00-dollar price range. As long as it remains within those boundaries, we will stay flat and wait for a break, either to the upside for a short-term reversal, or to the downside for a continuation of the prevailing downtrend.
Even if Twitter breaks through the upper side of the range, still, for a more comfortable view of the upside, we would need to see a break and a close above the 31.00 level. This way, the stock could be aiming for a possible test of the 33.60 zone, marked by the 7th and the 13th of August. If that zone is not able to withhold the buying interest, then we could see the share price moving higher, potentially towards the 36.00 barrier, which was the highest point of August.
The RSI and the MACD are in support of a potential uprise. The RSI continues to slope higher, and currently is pointing to the upside. The MACD, even though still below zero, is also on its path higher by being above its trigger line and pointing upwards.
On the downside, a break below the lower side of the aforementioned range would be half of the bearish story. In order to aim for much lower levels, we would need to see a drop and a close below the 26.55 level, which could be classed as a much better confirmation. That could force the buyers to abandon the stock and the bears could get quite comfortable in that driver’s seat. The next stop lower could be near the 24.25 support area, which was the low of the 6th of February. If that area doesn’t hold and the buyers are nowhere to be found, this could force Twitter to slide all the way to the 22.00-dollar price tag.
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