Twitter (TWTR) continues to climb within the Green Favored Zone of the SIA S&P 500 Index Report. Twitter jumped 27 spots to 39th place yesterday and it has moved up 62 spots in the last month.
Since bottoming out in March, Twitter (TWTR) shares have been steadily advancing in a Rising Channel of higher highs and higher lows. A recent correction bottomed out with a successful retest of support at $37.50, a previous breakout point. Since then, the shares have started to trend upward again, regaining $40.00 (which has become initial support) and continuing to climb. Next potential upside resistance levels appear near $45.50 and $49.50 based on measured moves, plus the $50.00 round number.
Earlier this month, Twitter (TWTR) staged a 12% correction following a 38% advance, which was slightly less than a common 38% retracement. In the last few days, the shares have turned back upward and appear to be resuming the uptrend which started back in March.
A breakout over $44.00 would complete a bullish double top pattern and signal the start of a new upleg with next potential upside resistance tests near $45.80 where a horizontal count and previous column high converge, the previous peak near $47.65, the $50.00 round number and $54.75 based on another horizontal count. Initial support appears near $39.10 based on a 3-box reversal.
With a perfect SMAX score of 10, TWTR is exhibiting near-term strength across the asset classes.
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