Twitter stock (TWTR) continues to plunge after banning President Trump. Jim Cramer, CNBC Host of Mad Money, stated a warning to Twitter on Monday. TWTR stock is down over 13% from the 5 day high and appears to be breaking through support at $47.
Cramer told Carl Quintanilla, “I think that there were a lot of people who literally knew that the president was the most important person and that you’d have to keep checking him and then you’d have to check people who talk about him. You just had this endless wave, this web that the president created, and it was action and reaction.”
Politics aside, investors should be asking if this is the end of Twitter because users will likely leave the platform for something that is freer. All the crazy politics helped keep people’s eyes glued to it. Now they will be going somewhere else.
Is Twitter Stock A Buy?
This morning I was looking at the charts and wondering if Twitter was a good buy because it had dropped so much. The short answer is NO. I am always very concerned about the risk of social media companies because they can fall out of favor. In this case, Twitter decided to fire its best salesperson which over 70 million Americans voted for.
Twitter Stock Pivots
Twitter has busted through all the supports except S3 at 31.41.
| Pivot | Classic | Fibonacci | Camarilla | Woodie | DM |
|---|---|---|---|---|---|
| S3 | 31.41 | 41.72 | 51.32 | 39.03 | — |
| S2 | 41.72 | 45.65 | 52.26 | 42.42 | — |
| S1 | 47.93 | 48.09 | 53.21 | 49.34 | 49.98 |
| P | 52.02 | 52.02 | 52.02 | 52.72 | 53.04 |
| R1 | 58.24 | 55.96 | 55.09 | 59.64 | 60.28 |
| R2 | 62.33 | 58.39 | 56.04 | 63.03 | — |
| R3 | 72.63 | 62.33 | 56.98 | 69.95 | — |
Twitter Stock Technicals – SELL
Twitter stock’s moving averages point to a strong BEAR trend. Investors should take note of this and way for some kind of price consolidation with a moving average confirmation before considering a trade.
| Name | Value | Action |
| Exponential Moving Average (5) | 49.79 | Sell |
| Simple Moving Average (5) | 50.44 | Sell |
| Exponential Moving Average (10) | 51.31 | Sell |
| Simple Moving Average (10) | 52.34 | Sell |
| Exponential Moving Average (20) | 51.65 | Sell |
| Simple Moving Average (20) | 53.25 | Sell |
| Exponential Moving Average (30) | 51.05 | Sell |
| Simple Moving Average (30) | 51.54 | Sell |
| Exponential Moving Average (50) | 49.56 | Sell |
| Simple Moving Average (50) | 48.29 | Sell |
| Exponential Moving Average (100) | 46.26 | Buy |
| Simple Moving Average (100) | 46.05 | Buy |
| Exponential Moving Average (200) | 42.1 | Buy |
| Simple Moving Average (200) | 39.1 | Buy |
| Ichimoku Cloud Base Line (9, 26, 52, 26) | 50.63 | Neutral |
| Volume Weighted Moving Average (20) | 52.04 | Sell |
| Hull Moving Average (9) | 48.2 | Sell |
