Besides the initial IPO rip, Twitter (TWTR) has not provided much to investors besides lost capital and false rumors. But over the past few weeks’ price action is encouraging me to believe that the dog days of Twitter may be behind us.
What I like most about the stock is that it stopped going down, simply.
The days of Twitter looking like a $5 stock are over. There has been a 2 year basing period full of volatility and a massive bullish divergence building. In my opinion, the stock has moved from a state of supply to its current state of equilibrium.
Over the past few months, price action looks to be tightening up on the right side of the base and acting much less chaotically. TWTR has the look of a stock that wants to start a trend higher. Unless the stock rolls over soon, I believe we will see a state of demand kick in next.
Love it or hate it, Twitter is very capable of having a positive 2018. The longer price can stay above $20 level, the more likely that it will.
Twitter Stock Chart (TWTR) – Is That A Rounded Bottom?
The author has long position in TWTR at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.