Thursday, 1 May 2014

TWTR - trying to reclaim the broken floor

Whilst the main market saw minor chop, there was some notable strength in the momo stocks. Twitter (TWTR) had to fight hard to hold minor gains of 0.3% @ $39.09. Near term outlook is moderately bullish, but there will be severe resistance in the 42/45 zone next week.

TWTR, daily


The break of the support floor - taking out the Nov' 2013 low, was a major fail for TWTR. Yet, the Wednesday candle was itself a reversal, and we did see TWTR breaking (if briefly) into the low 40s today.

Immediate outlook is moderately bullish, but even if TWTR can claw 10/15% higher across May/early June, I certainly see this stock falling to the IPO issue price of $26 later this summer.

For the moment, TWTR remains a loss making momo stock, and it remains somewhat entertaining to keep an eye on.