Twitter, Inc. shares ended a powerful two-month rally with a thud on Tuesday, dropping more than 10% in sympathy with Facebook, Inc’s data breach controversy. The decline reached the opening print of the Feb. 8 breakaway gap, where it is set to bounce strongly on Wednesday morning. The session traded more than 82 million shares, the highest-volume selling day since July 2017.
The stock has posted the strongest gains in five years since August, breaking out of a multi-year basing pattern and more than doubling in price to a two-year high in the mid-$30s. Twitter is technically overbought and overdue for a pullback, so Facebook’s trouble has provided a convenient excuse for profit taking and an intermediate correction. However, it’s too early to tell if scrutiny directed at its larger rival will eventually engulf Twitter in its own political controversies. (See also: Facebook Data Breach: Twitter and Snap Stock Tumble on News.)
Twitter posted its highest-volume sell-off since July 2017 on Tuesday and could test breakout support in the mid to upper $20s. …read more
Read more here: Is Twitter Stock Topping Out?