Market Analysis

Will Twitter’s earnings announcement drive the stock up

Twitter’s share price has not developed significantly since the summer of last year. The stock has meandered at a high level, in a band between US$27 and US$35. Last time it was tested, the upper support of the band could not be penetrated sustainably.

Today, Tuesday, Twitter will report its quarterly figures for Q1/2019 before the opening of the stock market. Can these figures boost the share?

The upper boundary line around US$35 could offer resistance. The market has tried to cross this zone on several occasions but without sustained success. This structural level could, therefore, be decisive for the market’s progress in the next few days.

If the bulls succeed in breaking through, the first level of resistance in the area could be US$37.30. The market would then be able to hold its ground. On December 12, 2018, the bulls tried to break through this level but failed. If the bulls crack this mark, then further resistance could be in the US$39.85 and US$42.50 ranges.

If, on the other hand, the market bounces off the upper limit and the bears take over, initial support for the market could be at US$30.92. Further structural levels could be US$27.00 and US$22.18 respectively.

In the MACD oscillator, the MACD line has crossed its trigger line from up to down, and the histogram is in negative territory. This is a bearish sign.

With the moving average lines, the 38-day smoothing line has crossed the 50-day smoothing line from bottom to top, which is a positive short-term sign.

Thus, the indicators are giving different signals, which is not an unusual situation as the market awaits the quarterly report.


TWTR.US - daily chart. Source: ActivTrader

TWTR.US Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst

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