Twitter Consolidating At Lower Levels

From a technical perspective, shares of Twitter Inc TWTR have filled in the gap from earnings in late July, and are now approaching a key support level at $39. The stock briefly traded below the $39 level on November 11, but did rally to close at $39.59 that day.

The 200-day moving average is at $44.01, well above its current price level. The stock has struggled recently in failed attempts to breakout above the $42 level, and has consolidated in a narrow range between $39.50 and $41.50 over the past several weeks.

A significant break below the $39 support level may lead to a test of the $37 area, which was a consolidation level in mid July. An upside breakout above $41.50 may lead to a challenge of the 200-day moving average area at $44.

Shares traded recently at $39.95, down 4.3 percent.