This is a stock that definitely used to get a lot of hype but lately
the noise surrounding it has quieted down. We like that. After a 30%
rally from last month’s lows, prices are now approaching that key $40
level that had previously served as support twice last November and
again in April. On the first day of technical analysis kindergarten
we’re taught that former support should turn into resistance. But
through experience, I have since learned that if prices break through
that potential resistance without much hesitation, an epic rally can
develop quickly.
Here is a daily chart of
$TWTR
since the November IPO. It’s easy to see the former support and what
could/should theoretically become overhead supply. My question is,
What if it doesn’t?
What if we blow right through this level? What if the overhead supply
right here doesn’t cause much trouble? What if we get a gap higher
above this level? What if we pull back a bit and then break through?
(most likely outcome in my opinion) <– All of these would be really bullish developments.
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