Twitter Inc Approaching Danger Zone

Twitter Inc.

shares are trading lower by $$1.40 at $46.19 in Tuesday's session. The only relevant news on the issue is that the company has acquired live-video startup Periscope, a startup still in beta that allows users to to stream live video from their phone. Twitter has been stuck in very tight trading range from $45.57 to $50.01 since posting a strong Q4 beat on February 5. That propelled the the shares from $41.26 to $48.01 the following session. The continuation rally ended on February 26 when it peaked at $50.01. Despite a rash of price target increases from Wall Street analysts, it has been unable to clear that major resistance level. It should be noted that level coincides with a pair of highs from October 24 ($50.19) and October 27 ($50.24) that were put in place just ahead of it disappointing Q3 earnings announcement. Twitter is now approaching the lower end of the trading range ($45.57) and a gap area (a technical analysis term that describes prices on a chart that occurs when the price of a stock makes a sharp move up or down with no trading occurring in between created from its huge earnings beat. If the decline continues beyond that low, it will enter a very thinly traded area down to $43.79.