Twitter stock has been under a steady downtrend ever since it gapped lower in early February this year. It has since traded below the 50 SMA (simple moving average) and appears ready to go for more losses.
Before that happens though, Twitter stock prices could be in for a quick retracement as selling pressure is starting to weaken in the near term. Price is finding support at the $32.00 levels and might be due to bounce to $38.00.
MACD is moving higher from the oversold area, indicating that buyers are ready to hop in a quick rally. RSI is also climbing from the oversold zone, which also suggests that Twitter stock might be in for a few gains. However the 50 SMA might act as dynamic resistance for any potential rallies and push the price back in a decline.
Twitter Stock News
Twitter stock has been in selloff mode ever since news of failed acquisition plans popped up. The social media network company made plans to buy Spotify and Soundcloud but recent reports have revealed that Twitter backed out of these potential deals. However, other reports cite that Twitter never planned on making these deals in the first place.
Such controversy has been weighing on the company’s stock prices in the past few months, as it struggles to sustain buying momentum after its recent IPO. Compared to other social media networks, Twitter hasn’t made much plans in terms of growing revenue and increasing stock value.
Shareholders have already mentioned concerns about Twitter’s weak growth prospects, adding further to the share price decline. The company has recently made an acquisition of an ad company, MoPub, which is its largest acquisition to date. Lack of progress from the company could keep weighing on share prices and possibly push it below the $30.00 mark.
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