The Twitter share price is trading lower by 0.23% in premarket trading, following yesterday’s modest 0.28% gain. This slight gain marked the fifth day of gains in six after the company announced it would sue Tesla CEO and Twitter shareholder Elon Musk over the latter’s cancellation of his $44 billion buyout offer for the company.
The court case is due to begin in October and the date was decided on a week after the company filed a lawsuit against Musk in a Delaware Court of Chancery following the withdrawal of the buyout offer by the billionaire. Musk’s lawyers had been pushing for a February 2023 date.
The Twitter share price could be in for some volatility as the company reports its earnings for the March – June 2022 quarter. The consensus estimate is for a loss per share of 6 cents, which is lower than for the same period in 2021 when it earned 4 cents per share.
Its 77 cents earnings per share for the previous quarter beat estimates for a loss per share of 19 cents. Will there be a surprise, or will the drama behind the botched takeover have been too much for the company to handle? Here is the Twitter share price forecast.
Twitter Share Price Forecast
The doji candle that marked Wednesday’s price action posted a lower high than the previous candle, indicating that the upside move may have stalled. Still, the bears would need to degrade the immediate support at 39.13 to force a decline, targeting 38.03 initially. Further price deterioration brings 35.63 (24 May low) into the mix as an additional target to the south before 34.53 (9 March high) and 32.05 (24 January and 8 March lows) become other viable downside targets.
On the flip side, a bounce on the 39.13 support that clears the Tuesday 19 July high at 40.50 makes 41.09 (3 June high) a viable upside target. If the bulls succeed in pushing beyond this barrier, 42.70 (28 December 2021 low) becomes the next target in line. Attainment of 45.01 (16/30 December 2021 highs and 19 April 2022 low) covers the 13 May 2022 gap, leaving 46.00 (psychological barrier) and 48.46 (14 April 2022 high) as additional harvest points for the bulls.
TWTR: Daily Chart
