Buy Twitter Because of Its Chart, Not Its CEO Shake-Up

NEW YORK (TheStreet) -- Social media stock Twitter  (TWTR) is seeing huge volume this afternoon, following news of a big management change.

Twitter announced that CEO Dick Costolo was leaving his position at the helm of the micro-blogging service, with company co-founder Jack Dorsey stepping in to fill the role until a permanent replacement is found.

Technically speaking, Twitter has been under pressure in a big way in 2015, selling off by about 30% from shares' April highs. While this stock is catching a bid at $36 support this afternoon, the move is probably more technical than news-driven; $36 has been a major support level for the last year now.

  • Nearest Resistance: $54
  • Nearest Support: $36
  • Catalyst: Management Change

Today's bounce looks like a decent buying opportunity for traders who keep a stop on the other side of that $36 price floor.

Read Jim Cramer's take on Twitter here

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

More from Opinion

It's Dumb to Think Legalizing Weed Is Still a Political Issue

It's Dumb to Think Legalizing Weed Is Still a Political Issue

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

AAP Exclusive: Cramer Says The President is No Longer on the Side of the Bulls

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

Why It Makes Perfect Sense for Netflix and Amazon to Buy Up Movie Theaters

2 More Reasons to Sell All Your Stocks and Run Away

2 More Reasons to Sell All Your Stocks and Run Away

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider

Sean Hannity's Link to Trump Lawyer Raises Questions: Doug Kass Insider