Twitter Rallies on Rumors of a New Subscription Service – Cycles Bullish

Steve Miller

On Wednesday morning Twitter released a new job posting for an internal team codenamed “Gryphon.”

In the job listing, the company noted that they were working to build a subscription-based platform.

Twitter’s stock price NASDAQ: TWTR soared on the news.

The company has since removed this wording from the job listing.

Twitter (TWTR) closed up over 7% on the day (Wednesday).

Let’s review the weekly cycle analysis.

Twitter (TWTR) Weekly Chart

twitter stock analysis bullish forecast price target image july 9

At askSlim we use technical analysis to evaluate price charts of stocks, futures, and ETF’s. We use a combination of cycle, trend and momentum chart studies, on multiple timeframes, to present a “sum of the evidence” directional outlook in time and price.

askSlim Technical Briefing:

This news could not have come at a better time according to our analysis.

The weekly cycle analysis suggested that TWTR was due to form an intermediate-term low. The projected low is due to form between early July and early August. TWTR’s weekly momentum has now turned positive. 

twtr twitter stock trend analysis bullish indicators strength image july 9

On the upside, there is a resistance zone from 39.64 – 40.32.

On the downside, the stock has rising intermediate-term supports from 30.47 – 28.47. For the bears to regain control of the intermediate-term, we would need to see the stock trade below the cycle low support at 28.23.

askSlim Sum of the Evidence:

TWTR is in a very bullish weekly cycle pattern with positive momentum. Given these conditions, there is a likelihood that the stock retests the prior swing highs around $40 by late-fall of this year.

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