Twitter Gets Hacked - That’s No Problem for the Charts

Twitter was sold lower after news of a widespread hacking scam. But the shares have risen from the lows. What do the charts say now for the stock?
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Twitter  (TWTR) - Get Report shares traded lower Thursday with the declines coming after the company's platform was hacked.

The cryptocurrency scam hacked into the accounts of Apple  (AAPL) - Get Report, Tesla’s  (TSLA) - Get Report Elon Musk, Kanye West and Amazon's  (AMZN) - Get Report Jeff Bezos, among others.

Investors initially reacted negatively to the news, but that was mostly at the beginning of the session. Twitter rallied in the opening minutes of trading on Thursday and have continued higher since.

Now down just 0.5% on the day, what do the charts say after Thursday’s bounce off the lows?

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Trading Twitter Stock

Daily chart of Twitter stock.

Daily chart of Twitter stock.

When it comes to investing, please remember the following: The news isn’t necessarily important, it’s the reaction to the news that one must watch.

If a company — take Delta  (DAL) - Get Report for example — reports poor earnings like it did this week and rallies, then it’s something that bulls should take note of.

In the case of Twitter, there was bad news pertaining to its platform. However, the shares are being bid up off the open, not hammered down by sellers. That’s not a guarantee that it will continue higher, but shows that bulls have some fight left in them.

Shares also continue to hold the 10-day moving average, a healthy sign that buyers are gobbling up the dips. Now wedging into a tightening range, I’d like to see if Twitter stock can break out over resistance and rotate over Wednesday’s high at $35.80.

Over $35.80 and a big level comes into focus near $37. If shares can clear $36.98, Twitter will rotate over the weekly high and last month’s high in the same move. That could trigger a rally up to the $39 area, where shares found resistance in February.

On the downside, look for a break of the 10-day moving average and wedge support. Below puts the $32 to $32.50 area in play, where Twitter stock will find the 50-day and 200-day moving averages.

Below that and $30 could be in play.