Will the Twitter Stock price recover: This investing legend thinks so

The Twitter stock price was given some good news yesterday when a 13F filing showed Elliott management added 3 Million shares last quarter. Investors will hope this is enough to reverse the seven consecutive days of losses, which have extended the August decline to more than 10%.

Twitter Inc (NYSE: TWTR) finished Monday the same way it ended each day of last week, lower. TWTR closed the day at $63.78, down $1.04 (-1.60%). However, the news that activist investor Paul Singer’s Elliott Management has been adding to its position will be welcomed by shareholders. It’s been a mixed year so far for Twitter. Since January 4th, TWTR is up around 20%, but it is also more than 20% below 2021s high. Furthermore, the recent price action is particularly concerning, considering the one-way traffic of the last week.

Although whether the news will do anything to give the Twitter share price an immediate lift is debatable. Singer’s firm has been circling the social media giant and buying up stock for quite some time. Back in March 2020, Elliott launched a failed bid to oust Twitter CEO, Jack Dorsey. However, the fund did manage to claim a board seat. And despite Elliott’s Jesse Cohn vacating that seat in June, the fund still likes the stock.

TWTR Price Forecast

The daily chart shows the Twitter stock price is in a clear downtrend. Furthermore, in yesterday’s session, the stock traded below the 100-day moving average at $63.57. This is, therefore, the initial support level. And a close beneath this barrier would target the 200 DMA at $59.40. However, bulls will be encouraged it recovered this threshold and finished the day above the important indicator.

Should TWTR hold above $63.57 in today’s session, that would suggest a ‘false’ breakdown and would be viewed as constructive and likely lead to a test of the 50 DMA at $66.38. Furthermore, if the price advances beyond the 50 DMA, it should have the momentum to target July’s high at $73.34.

Twitter Stock Price Chart

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