Twitter Stock Trades Higher After Super Follow Launch: Technical Levels To Watch

Twitter Inc. (NYSE:TWTR) shares traded higher Wednesday after the company announced two new features for the social media platform.

Twitter announced “ticketed spaces” and “super follows,” which are new ways Twitter users can monetize their content and get paid for what they are putting on Twitter.

Twitter gained 4.25% Wednesday, closing at $66.49. 

Twitter Daily Chart Analysis

• Shares have been trading in what technical traders call an ascending triangle pattern. The stock was trading above the resistance for a while but fell back below and found support along the higher low trendline.
• The stock is trading above both the 50-day moving average (green), and the 200-day moving average (blue), indicating sentiment in the stock is likely bullish.
• Each of these moving averages may hold as an area of support.

Key Twitter Levels To Watch

• The stock was trading above resistance but fell back below resistance and found support at the higher low trendline once again. The stock then broke through resistance and has been moving higher since.
• The $55 was previously holding as resistance before the stock was able to break above it; now the level may turn into support, as the price is trading above the level. 
• Twitter just became overbought on the Relative Strength Index (RSI). The overbought range starts at 70 and goes up to 100. Twitter crossed above 70 Wednesday and now sits at 75.

What’s Next For Twitter?

Bullish technical traders would like to see the stock continue to form higher lows and move upward. As long as the stock forms higher lows, bulls will maintain control of the stock.

Bearish technical traders would like to see the stock fall back below the $55 mark and start heading lower. If the stock can cross below the higher low trendline, the stock may see a bearish push downward and a possible trend change.