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Twitter's Stock Looks Ready For A Gap Fill

Benzinga2021-05-25

Twitter Inc(NASDAQ:TWTR) printed a big beat on its first-quarter 2021 earnings but gapped down almost 14% the following day after issuing disappointing second-quarter guidance.

The social media companyreported revenueof $1.04 billion and earnings per share of 16 cents. Second-quarter guidance of $980 million to $1.08 billion disappointed investors, however, as the consensus is for revenue to reach $1.06 billion.

The gap down has left opportunity for traders, because gaps fill 90% of the time, and it looks as though Twitter is getting ready to rise up and fill the gap.

The Twitter Chart: Twitter found a bottom near the $49 level after its steep sell-off and created a bullish double bottom pattern on May 11 and 13. On Friday, Twitter’s stock printed a bullish hammer candlestick on the daily and continued upwards momentum should pop Twitter up over resistance and into gap fill territory.

Twitter has spent the last 16 trading days in a sideways channel between support at $49.12 and resistance at $55.45

On May 18, Twitter’s stock regained the support of the eight-day exponential moving average (EMA), which is bullish and the stock is trading, and being supported by, the 200-day simple moving average indicating that overall sentiment in the stock is also bullish. Twitter is trading slightly below the 21-day EMA, however, which is slightly bearish.

Bulls want to see Twitter’s stock regain the $55 area as support, which will also allow it to trade back above the 21-day EMA. If Twitter’s stock can pop over $55.45, there's not much resistance, in the form of price history, to stop its stock from completely filling the gap and reaching the $64 area.

Bears want to see Twitter’s stock smacked down at the $55 level and for it to retrace back towards support of $49.12. If the stock was unable to maintain that level as support, it could trade down toward $44.40 before potentially bouncing.

TWTR Price Action: Shares of Twitter were trading higher by 3.5% to $56.36 at publication time.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • WilliamLai_
    ·2021-05-25
    Nice
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    Good
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    ·2021-05-25
    huat huat
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    Lastest. Like n comment pls. 
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    ·2021-05-25
    LIKE and COMMENT. You know you want to 
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    ·2021-05-25
    pls like & comment
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    ·2021-05-25
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