Trading Roundup: Twitter Hits a 3-Year High

Twitter hits a 3-year high

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The #TWTR hit three-year high after the news that it will replace Monsanto in the SP500. That was the main reason for the bounce.

Post the announcement by the Dow Jones Indices that it would replace Monsanto Company (NYSE:MON) in the S&P 500, Twitter Inc. (NYSE:TWTR) stocks rose heavily on Tuesday by 5%, trading at a three-year high. As a result, Twitter will replace the agriculture and chemicals maker Monsanto, which is in the process of being bought by German giant Bayer.

Twitter stocks pushed to US$39.92, levels not seen since April 2015.

Inclusion in the S&P 500 attracts further buyers to the Twitter stocks, given that Exchange-Traded Funds (ETFs) and Mutual funds, that track SP500 index must now equally buy Twitter shares in accordance with their market weighted value in the Index.

Overview of the Twitter Stock CFD

#TWTR, Admiral Markets MT5, MT5SE add-on, H8 chart, April 2018

Source: #TWTR, Admiral Markets MT5, MT5SE add-on, H8 chart, April 2018

The #TWTR has formed a huge ascending zig zag pattern and it has made a three-year high. At this point we can see two possible buying zones. The POC 36-36.50 is the first zone for buying and a deeper pullback can be expected if 32.00-33.20 is reached. Targets for the move should be 45.00, 48.38 and 50.00 based on next resistance levels. Only a break below 27.50 might stop the bullish advance.

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This material does not contain, and should not be construed as containing, investment advice or an investment recommendation or, an offer of or solicitation for any transactions in financial instruments. Please note that such trading analysis is not reliable indicator for any current or future performance as circumstances may change over time. Before making any investment decisions, you should seek advice from independent financial advisor to ensure you understand the risks.