Technical Analysis – Twitter stock declines below red Tenkan-sen line; neutral in long term

Melina Deltas, XM Investment Research Desk

Twitter stock price has been developing within a consolidation area over the last nine months with upper boundary the 37.10 resistance level and lower boundary the 26.20 support barrier.

From the technical point of view, the market could experience some softness in the short term, as the RSI is slipping towards its 50 neutral level and the MACD oscillator is holding below its trigger line, confirming the recent weak movement in price action. The 50 and 200-day simple moving averages (SMAs) are in process to meet each other, however, the price still stands above the Ichimoku cloud and marginally below the red Tenkan-sen line.

In case of a significant bearish movement, immediate support could appear near the 200-day SMA currently at 32.89 and then at the 50-day SMA near 32.21. More declines could also touch the 29.40 hurdle, taken from the latest lows.

Alternatively, a significant penetration of 35.36 could drive the price towards the upper boundary of the trading range, near 37.10. If the bulls pick up further steam, shifting the outlook to a more positive one, the next level to watch could be the 41.50 resistance, identified by the low on July 2018.

Concluding, Twitter stock would escape from neutrality if it manages to jump above the 37.10 region, or if it falls below the 26.20 mark.