After bottoming in October, Twitter Inc. (NYSE: TWTR) has recovered some of its losses and managed to get back to August and September levels. Nevertheless, this is still far from this year’s high of 47.78, which was achieved on the 15th of June. It is doubtful that the price could travel towards that area this year, but on a positive side, there is a good chance that the stock could finish the year in the green, as this year’s opening price was around the 24.00 mark.
From the technical side, TWTR is trading above a short-term upside support line drawn from the low of the 11th of October. The stock is currently stuck fractionally the 33.60 resistance area, a break of which could clear the path towards the high of the 7th of November at 35.10. If the price acceleration doesn’t end there, the next potential target for Twitter might be the 36.00-dollar price tag, marked by the high of the 28th of August.
Looking at our oscillators, the MACD continues to bounce around the zero line, whereas the RSI, slowly keeps pushing higher. In fact, the RSI has been on a steady upmove since around the end of July.
On the other hand, even if the stock reverses and moves below the aforementioned upside support line, in order to get comfortable with downside, we would need to see a drop below the 31.00 level. This way, we could start looking into a possibility of seeing a re-test of the 29.90 hurdle, which was the lowest point of November. If that support zone is no match for the sellers, we might see TWTR moving further down towards the 28.10 area, marked by the low of the 23rd of October, or even lower.
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