Analyst Gives Twitter A New Price Target: Can Shares Reverse?

Twitter Inc. TWTR shares are trading higher Wednesday after Citi lowered the stock’s price target to $47 from $60, which still implies upside from the current stock price. The stock is bouncing after seeing a month of strong downward movement.

Twitter was up 1.5% at $44.59 at press time.

Twitter Daily Chart Analysis

• Shares fell out of the bottom of a pennant pattern and saw a period of strong downward movement, but may now be seeing a bounce.
• The price was getting condensed between narrowing highs and lows before falling out of the bottom of a pennant pattern. Breaking below pattern support showed the stock was unable to keep forming higher lows, and followed with a drop in price.
• The stock is trading below both the 50-day moving average (green) and the 200-day moving average (blue), indicating sentiment in the stock looks to be bearish.
• Each of these moving averages may hold as a possible area of resistance in the future.
• The Relative Strength Index (RSI) has been forming lower highs and falling lower the past couple of months and now sits at 27. This is in the oversold area and shows that the stock is seeing much more selling pressure than buying pressure.

See Also: If You Invested $1,000 In Twitter When Jack Dorsey Was Named CEO In 2015, Here's How Much You'd Have Now

What’s Next For Twitter?

Bulls want to see the stock see a bounce back and begin to form higher lows once again. Higher lows are key to the stock continuing to make growth in the stock’s price. Bulls would also like to see the stock cross above the moving averages for a possible change in sentiment.

Bearish traders want to see the stock continue to fall. Bears are in control of the stock and looking to continue to hold control of the stock. In order for bears to maintain control of the stock, they would like to see the stock be unable to form higher lows and for the stock to stay below the moving averages and see bearish sentiment.