Stock of the day: Twitter

In today’s analysis we’re taking a look at Twitter, which is coming back from dead, or at least is trying too. Spring is in the air, and you can see it not only outside, but also on this social media giant’s chart.

First, let’s take a look at the historical background. Long story short, Twitter pretty much collapsed. We were trading around 80 USD at the end of February 2021, and throughout the year the price was almost permanently dropping, touching the low, slightly above 31 USD at the end of February of this year.

However, March is bringing us hope. The optimism is coming from the fact that the price managed to break the mid-term down trendline (green), connecting lower lows since the beginning of December.

That’s a great first step but it’s not full buy signal yet. What we need is a breakout of the horizontal resistance on the 39 USD (blue). The price breaking and closing a day above that level should be a firm buy signal. As long as we stay below that level, traders still have to be cautious.