Twitter Stock (TWTR: NYSE) has staged a remarkable comeback recently, gaining for four consecutive weeks. However, the rally may just be getting started.
TWTR finished Friday’s session $60.50, +$0.20 (+0.33%).
The stock added 2.54% on the week, bringing its monthly return to +4.31%.
Investors in the social media giant have not had an easy ride this year. TWTR plunged -17% in the first three weeks of trading, setting a 2020 low of $40.40 on the 19th of January.
In the five weeks that followed, the price staged a monumental rally, climbing an impressive 80% to a new lifetime record of $80.75. After that, however, the momentum turned sharply lower and lost 20% the following week.
Furthermore, the company’s Q1 earnings call only made matters worse. Although revenue was broadly in line, disappointing user growth and pessimistic forward guidance triggered a substantial sell-off.
The price eventually found a floor at $49.12 on May 13th, which marked the beginning of an impressive run of form.
TWTR Technical Outlook
Looking at the weekly price chart, we see the stock has, for the most part, remained in a broad uptrend from the March 2020 low. However, April’s decline took the price below the supporting trend.
As you would expect, the volume increased significantly on this flush, which indicates long liquidation.
The price has, of course, now recovered the trend line (at $55.65), which once again becomes the first line of support. This puts the Twitter stock price on a path to the April high of $73.22.
My bullish outlook is dependent on the price remaining above the trend line support, and a move below this level would cancel the view.
Twitter Stock Price Chart (Weekly)
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