Twitter Shares Key Highlights
- Twitter shares have been consolidating lately, forming a range visible on the 1-hour chart.
- Price is currently testing the range support near $28/share, pending a bounce back to the top at $32/share.
Twitter shares are still hovering around the range support, with a bounce likely to indicate a continuation of the sideways movement and a downside break set to spur more losses.
Technical Indicators Favor A Bounce
RSI is on the move up, which means that bullish pressure is in play and that a bounce is more likely to take place than a break. Stochastic is also heading north, coming fro a slight bullish divergence, and confirming that the path of least resistance is to the upside.
Meanwhile the 100 SMA is safely above the 200 SMA for now, also confirming that further gains are likely. Stronger buying momentum might even lead to an upside break of range resistance and a move up to the next potential ceiling around $36/share. On the other hand, a downside break of support could lead to a drop until $24/share.
Last week, Twitter published better than expected earnings results and gave support for Twitter shares. News that the company is trimming its workforce also led to positive expectations for operating revenues.
Intraday support level – $28
Intraday resistance level – $32
Charts from TradingView