Friday, 8 November 2013

TWTR - near term significant weakness

The Twitter (TWTR) IPO saw a huge gain on its opening day, but the week concluded with TWTR seeing a rather significant decline, settling -7.1% @ $41.69. Regardless of any continuing strength in the main US equity market, TWTR will likely lose the $40s within the next few days.

TWTR, daily (2mth)


*yes, I realise a chart with just two daily candles is a strange thing to post, but still...the two candles merit some attention.

TWTR looks set to lose the $40s early next week, and that should open up a further $10 the lower 30s.

Indeed, the real issue is whether TWTR will fall all the way down to the IPO list price of $26 before year end? I think there is a 70/80% likelihood of that.

*On the flip side, much like FB, once the stock settles down after some weeks/months, the momo chasers will probably pile in, and the stock looks set for much higher levels in 2014.

Video on TWTR from