Short Squeeze On Twitter Ahead Of Earnings

Joel Elconin is the co-host of Benzinga's PreMarket Prep, a daily trading idea radio show.

Twitter Inc TWTR shares are trading higher by $2.38 at $39.84 in Tuesday's session. The company, which is do to announce earnings after Thursday's close, is getting a boost from comments from SunTrust's Bob Peck, who opined that Twitter's “Facebook Moment” just begun.

The comments were made in reference to the announcement that they will begin to sell ads on Flipboard.

The issue, which has been range bound since December 9 between $34.62 and $40.95, has seen a majority of the trading action taking between $36.54 and $40.13. Now with Tuesday's dose of unexpected good news, the issue is flirting with the key psychological resistance level of $40.00, reaching $39.99, before retreating.

It should be noted, Twitter has either met or beat Wall Street expectations in every quarter since debuting in December 2013.

Shares traded recently at $39.85, up $2.39 (6.4 percent).