Has Twitter Finally Found Its Wings? The Stock Is Breaking Out Of A Month-Long Consolidation

Twitter Inc TWTR shares are trading higher by $0.24 (2 percent) at $15.35 in Tuesday's session. The least-liked social media stock is coming off one of its longest consolidation periods since its IPO in November 2013.

After issuing lower guidance with its Q1 report, Twitter swooned from its April 26 close ($17.75) to $14.86 the following day. On that day, the top of the trading range was put in place ($15.28) and was not exceeded until today.

From April 29 until Friday, the issue traded in a range from $13.73 to $14.93. Several of the lows were made just around its previous all-time low of $13.90. That low was breached on May 24 ($13.73), following a downgrade by MoffettNathanson.

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Despite making a new all-time low that day, it rebounded and manged to avoid its first-ever close in the $13 handle, when it ended the session at $14.03. After a few quiet sessions, Twitter finally broke out of its 20-day range ($13.73 to $14.93), with most of the price action taking place in the mid-$14 handle on Friday. It finally broke into the $15 handle today at $15.10.

After a flat open, it found support two pennies under Friday's close at $15.08 and began to move higher. So far, it has reached $15.49 and is not far off that level. Based on the daily chart, the issue is now trading in a vacuum area that extends all the way to $17.08, which was the low for the day before it Q1 report.