Leading social media stock, Twitter Inc (TWTR), has been under sharp pressure since April 30, 2021. At that time, the stock plunged by 15.2% after reporting earnings that disappointed Wall Street investors. Today, Twitter Inc (TWTR) shares are trading lower by another 4.28% to $52.86 a share. Traders should note that this popular social media stock actually topped out on February 25th, 2021 at $80.75 a share. Since that high pivot, the shares have fallen below the important 50 and 100-day moving averages. This formation puts the stock in a weak position on the charts. The stock is still trading above the 200-day moving average, but momentum selling suggests that this stock has lower to go before finding a solid bottom.
Traders must now watch for support around the $44.00 area. This key support level is where the stock broke out in January 2021 before making new all time highs. Often, prior breakout levels will serve as excellent chart support when initially tested. This support level is also a major retrace support level adding strength to the area. This is where traders can look for a potential long side trade.
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