Twitter stock has declined considerably after it touched a more than three-year high of 47.76 on June 15 and has been developing within a downward sloping channel since then. Additionally, over the previous couple of sessions, the price dipped below the 20- and 40-simple moving averages (SMAs) in the 4-hour chart but is currently trading near the 23.6% Fibonacci retracement level of the upleg from 26.90 to 47.76, around 42.85.
Technically, the momentum indicators are supporting the slightly positive momentum. Specifically, the RSI indicator is pointing north near the threshold of 50, while the MACD oscillator jumped above its trigger line, creating a bullish cross and is moving towards the positive territory.
Should the price decisively close above the 23.6% Fibonacci seen at 42.85, it could extend the upward movement until the 20- and then the 40-SMA at 43.59 and 44.00 respectively. Further advances above these levels, could then target the falling trend line of the negatively aligned channel, around 45.60. A break of this area could drive the price above the aforementioned pattern and challenge the 47.76 high.
On the other side, a decline could meet the 41.60 support, which the market was unable to break through from mid-June. Slightly lower, the price could retest the 38.2% Fibonacci region of 39.79.
Overall, an upward move could also post a clear step above the channel and endorse the scenario for an aggressive bullish rally. However, a penetration of the pattern would drive the price towards a bearish retracement.
