Twitter, Inc. (TWTR) has recovered nearly 11% off of yesterday morning’s post EPS spike low.
That said, however, it has rallied right into the area of its prior lows at 39.40/60, which is the initial heavy resistance zone that could stall or reverse recovery-price action.
If TWTR does chew through and sustain above 39.40/60, then the next higher resistance plateau is 40.70, which represents the 50% recovery level of the entire plunge after earnings were announced.
My final resistance level is 42.00.
The ability of TWTR to claw its way above 40.70, and continue higher above 42.00, will argue strongly that TWTR has put in a significant medium-term and corrective low.
Otherwise a downside pivot reversal from 40.70-42.00 will argue for another test of the low.