Twitter shares stuck between MAs as stock markets remain uncertain

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Tech stocks returned to center stage today as early optimism dissipated. Nasdaq futures erased early gains to nearly flat levels, but have now regained ground. Tesla’s drag was a key talking point yesterday as tech stocks were hammered, with the Nasdaq dropping nearly 4% at one point. The chart doesn’t paint a pretty picture with the index down more than 20% now year-to-date.

Nasdaq Daily Chart – Down more than 20% in 2022

MAs have turned into resistance for the Nasdaq

Support at the 38.2 retracement level @ 12,552 is the main one to watch this week with the March 2021 low at 12,397 adding further buffer to the downside. But break that region and things could get even uglier and in such a scenario I don’t see how it wouldn’t trickle down and impact broader market sentiment. Needless to say, the markets are very volatile. There are a number of earnings to be released after closing, including Meta, Ford, PayPal, Qualcomm, Pinterest, servicenow.

Twitter Daily Chart – The 200 SMA acting as resistance

The 200 SMA has turned into support at the bottom

Twitter had been on a downtrend since November of last year, with the 20 SMA (grey) acting as resistance. But, in March, the trend changed as Elon Musk showed interest in Twitter, and the price broke above the moving averages, except for the 200 SMA (purple) which turned into resistance, rejecting the priced twice recently. But the 20 SMA serves as support, so let’s see who will win.

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