Twitter Stock Breaks Out Toward Resistance Levels

Twitter, Inc. (TWTR Twitter Inc TWTR 17.22 +2.32%​) shares have moved sharply higher over the past few sessions amid buyout rumors that sparked interest in out-of-the-money call options. At the same time, the stock broke out from near-term trendline resistance and could make a move to break out from its next major resistance levels this week. Traders have been keeping an eye on the stock due to the opportunity to capitalize on both fronts.

Twitter beat analyst expectations last quarter with revenue that fell 4.6% to $574 million and earnings per share that hit eight cents. However, many analysts remain skeptical of Twitter’s ability to grow. Aegis Capital believes that the market is in the early stages of an ad recession, which could be bad news for companies like Snap Inc. (SNAP Snap Inc SNAP 15.15 +4.48%) and Twitter, while Jefferies downgraded Twitter stock in favor of other social players such as Facebook, Inc. (FB Facebook Inc FB 173.21 +0.65%) and Alphabet Inc. (GOOG Alphabet Inc GOOG 935.95 +0.88%) subsidiary Google. (See also: Twitter Has Lost Out to Facebook: Jefferies.)

Twitter shares jumped amid rumors and call option buying, but traders should watch for a breakout from these key levels. …read more

Read more here: Twitter Stock Breaks Out Toward Resistance Levels

Category: TWTR, SNAP, FB, GOOG

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