The Line in the Sand For Twitter’s Stock
Twitter reported it’s 4th quarter 2016 earnings today and much like every report in recent memory, the stock sold off.
Here’s a look at the long term technicals for Twitter.
There’s one critical level that stands out and its being tested right now.
This $16 to $16.50 area has been support since July of 2016 and buyers have stepped up and bought there now 4 times.
Notice we’ve also progressively been making lower highs throughout this process as each subsequent rally off support gets more and more shallow (traditionally a bearish pattern).
So to put it all together, and the line in the sand for Twitter’s stock is clear.
If you’re looking for a low risk entry into twitter with a tight stop, then this general area is about as good as you’re going to get. If twitter starts to breakdown under $16, that is your signal to exit.
Given how widely watched this general area is there could be some stop running and tricky price action here, so it’s up to you to figure out the execution of the trade, the bottom line is be bullish above and bearish below.
A weekly close or two under $16 should tempt the twitter gods to re-test the all time lows around $14.
Good luck out there.
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