NEW YORK ( TheStreet) -- Twitter has been steadily drifting lower for two weeks now. The huge breakdown back on April 28, which sent shares 18% lower following a disappointing first-quarter report, is still weighing on the stock.
More downside appears to be ahead, and with it, a very low-risk buying opportunity for patient bulls.
As TWTR begins to pierce the $36 area, it will enter a major support zone. This key area includes the stock's summer 2014 lows as well as its December multi-week bottom. In January of this year, the $35.50 level marked the month's low as shares built a four-week base. As February began, TWTR exploded to the upside after breaking out of its January consolidation. In addition, as the $36-to-$34.50 area is tested, the stock will return to a deeply oversold MACD reading.
Also significant is the dramatic easing of selling pressure of late. While TWTR nears major support, it appears to have become completely sold out.