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by Darius Anucauskas

Twitter - Technical Outlook

Twitter – Technical Outlook

Twitter is expected to release its financial results for the second quarter tomorrow, 27th of July. The numbers are planned to come out at around 7:00 ET, just before the US opening bell. The same day, after the announcement, Twitter will have a conference call, where they will discuss their financial performance.

Technical Analysis:

From the technical side, looking at the daily chart, Twitter had a very strong run up north, between the period from the 30th of April and the 15th of June, when it found its strong resistance at and reversed back down. That said, the move lower still continues, but on a very slow pace, so speaking technically, the stock now seems to be “flagging out”. This could mean that Twitter could make its way higher again, potentially trying to target its recent all-time high at around 47.80 dollars per share.

After a strong bullish daily candle that we have seen forming yesterday and the fact that investors believe that Twitter may not disappoint on the earnings release, there is a good chance that we could see the stock moving higher. If it tests again and eventually breaks the 45.30 resistance line, it could also break the upper side of the flag and head higher towards the 46.90 dollar zone, where more potential investors could jump into the action and try to drive the price towards the abovementioned 47.80 level, marked by the peak of the 15th of June. If that level is broken, then Twitter could be positioned for reaching new all-time highs.

On the downside, if the Twitter price drops below the 41.50 barrier, this could be seen as short-term sign of weakness, where short-sellers could take advantage and pull the stock lower to the 39.20 zone, a break of which, could lead to a test of the 36.80 area, marked by the peak of the 14th of March. Just slightly below that area runs the medium-term upside support line, taken from the low of the 25th of January, which could act as a nice bouncing ground for the price.

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