TWTR (Twitter Inc) close to a bounce ?

The company was founded in 2006, Twitter is a social media platform that allows its users to post their thoughts in 140 characters or less, known as tweets. Twitter also allows users to broadcast and live-stream videos through its Vine and Periscope mobile applications. The company’s promoted products including promoted tweets, accounts, and trends help advertisers to promote their brands, products, and services.

Twitter ranks among the top players in the social media landscape, which includes Facebook and LinkedIn. Investors have had high hopes for the company for close to ten years. Twitter was one of the most sought after IPOs as the stock popped to $44.90 per share on its first trading day, after the IPO was priced at $26 per share. Twitter’s shares shot up to $73.31 on December 26, 2013, currently trading around 19$ handle.  However, Twitter’s stock price has declined continuously in the wake of stalled user growth & disappointing earning reports. The cumulative results are none too impressive figures & product improvement have also failed.

Twitter struggled with sluggish growth in the number of active users, which led to a fall in its popularity and a loss of market appeal. This is crucial, as a loss in appeal could reduce Twitter’s overall market share in the advertising space. Advertising remains the major source of revenue and Twitter already faces stiff competition from Google and Facebook in this market.

Technical look of the weekly Chart is showing Elliott wave 9 swings from December 2013 peak, which appeals the possibility of another marginal new low below February 2016 lows or can see as low as 8$ mark to complete the 11 swings bearish sequence from 2013 peak thus as far as it is trading below descending trend line from 2013 peak & more importantly below October 2015 peak (31.87) before it starts another bullish cycle or does correct the 2013 peak in 3 swings at least.


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