Twitter got off to a bad start in the 2022 stock market year, unlike the CAC 40 on this side of the Atlantic. Blue bird social network action has been on the decline since peaking last October, with a marked downtrend. And Bollinger Bands (value volatility gauge) analysis in daily data suggests further downward pressure in the short term. Based on Twitter fundamentals alone, Wedbush Securities recently lowered its price target from $ 69 to $ 52 after the announcement of the departure of Jack Dorsey, the founder and CEO.
While Twitter is targeting an average annual growth of 20% for its active users, with turnover expected to double between 2020 and 2023, these objectives are considered ambitious by the broker. “While the change of CEO does not necessarily threaten the group’s ability to achieve its objectives, we expect to see more progress,” notes Wedbush.
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What does technical analysis say?
As noted above, the Twitter stock is on a downtrend, on a daily basis. “The lower bound of the Bollinger bands is open, while the exponential moving averages at 13 and 34 days (MMe13 and MMe34) appear to be dynamic resistances”, notes Daniel Cohen de Lara, president of the French Association of Technical Analysts ( Afate).
In the event of a break confirmed at the close of support at 41.10 dollars, the objectives would be located at 37.95 dollars then 34.69 dollars and 31.48 dollars, according to the expert. Conversely, this negative scenario would be called into question in the event of a return above 48.30 dollars.
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