Twitter has seen a lot of news coverage for weeks now and there seems to be no end in sight.
The latest news is that Twitter is suing Musk for backing out of deal. How will it all play out in terms of price? Probability favors more downside action.
Look at the major support at 31.50 where it held the price 3 times prior to recently, making it the 4th time. Support and resistance don’t last forever and either we don’t come back here for awhile or it breaks. The more times we test it, the weaker the support becomes, like a glass bridge. When it does break, look out below.
Is Twitter stock going up?
How can one trade it? Watch for a break and go short or scale in short near the recent break at around 37.40. The price could definitely go into a recovery phase for the next month as well and depending on your trading time frame, you’ll have to adjust to that. Another big move either up or down in a few day’s time will more likely come when the overall market is in sell mode again.
This price zone is likely to cause another sequence of sideways action like before or not that strong uptrend. Twitter has been very news driven as well and these events can also cause price spikes in either direction.
When there are so many factors to consider, sometimes it’s just best to take it one day a time, keep it simple & Trade this Chart!
