Twitter Stock Is In Real Technical Trouble Now

Twitter Inc TWTR shares continued their post-earnings slide on Monday morning, dropping another 3.4 percent into dangerous technical territory. Twitter stock is now down more than 21 percent since July 20 and is trading at its lowest level since April.

After delivering surprisingly positive subscriber growth in the first quarter of the year, Twitter was unable to produce any net subscriber growth whatsoever in the second quarter. Advertising revenue dropped 8 percent in the most recent quarter, and the market was unimpressed by Twitter’s proposed solution. The company announced a $99-per-month ad subscription service that will allow registered advertisers to automatically get their first 10 daily tweets promoted on the platform. 

At this point, Twitter seems to be drifting lower without any major near-term technical support or potential positive catalysts to stop the bleeding. Things have gotten so bad that Barron’s even suggested the stock could be destined for the single digits.

Related Link: Social Q2s: Facebook Rules, Twitter Drools, Snapchat Starting To Lose Its 'Cool'?

Monday’s drop has Twitter trading below the $16.27 level that served as support back in June. But before the single digits are in play, bulls have at least one more key level to watch for potential support.

If Monday’s decline continues in the days ahead, Twitter could be headed for a re-test of the $14 level that has served as support three times since the beginning of 2016. Support at that level held in February 2016, May and June 2016 and once again in April of 2017. Each time, the dip to $14 was a buying opportunity, so bulls will be watching closely for any signs of a bounce. However, a breakdown below $14 could be a sign that Twitter is headed for new all-time lows and uncharted bearish territory.

At time of publication, shares of Twitter were down 4.18 percent on the day at $16.08.

Joel Elconin contributed to this story.