(click the chart to enlarge)
In reference to the daily price chart, the first time TWTR broke below the 36.14 support [1], it was able to close above it and held that level until it failed to reclaim the 38.59 level. After its failed attempt to move above the 38.59 resistance, it continued its downward price action until it finally broke the 36.14 support and formed a small double bottom pattern with a doji candle [2].
As it bounced off the double bottom and moved back above the previous support of 36.14, it also moved above the declining trendline [3]. In the last three trading sessions, TWTR has been trying to move back above the 38.59 resistance level. If it can reclaim the 38.59 level and break above the near term trendline [4], it could present a trading opportunity to initiate a potential swing long with 43 as the first price target [5].
If TWTR can move beyond 43, then the price gap [6] up at 47 could be back in play with the possibility of a move toward recent high near the 55 level [7].
Disclosure: No position.
