Is Twitter's Purging Of Fake Accounts A Buying Opportunity???
After a Washington Post report last week that Twitter’s fake account purge might affect its second-quarter user numbers, Twitter’s chief financial officer said on Monday that most accounts affected by its clean-up will not be included in its metrics. In a tweet, Ned Segal explained that most of the suspended accounts were less than 30 days old or caught at sign up and therefore never counted.
But the Washington Post also cited an anonymous source who said the clean up might “result in a rare decline in the number of monthly users” in the quarter that ended on June 30. Twitter’s stock price fell more than 9% to a low of $42.46 on Monday, but has been climbing back up after Segal’s clarification. The company’s next earnings report is scheduled for July 27.
Twitter had been enjoying one its best runs as of late with its stock recently touching a three-year high. So did the Twitter news yesterday create a buying opportunity for those who missed the leg up this year?
Monthly Chart (Curve Timeframe) – monthly supply is at $52 and monthly demand is at $24, so it's high on the curve.
Weekly Chart (Trend Timeframe) – the trend is clearly up, but again, it's high on the curve.
Daily Chart (Entry) – price is basing currently, so the question becomes will it break out to the upside or the downside. I think Twitter is a SELL.
If price breaks out to the downside, wait for the pull back to short down to $32.
If price breaks out to the upside, wait for price to hit the daily supply zone at $55, than short the stock.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
