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Twitter Jumps 18.50% After Earnings; Will Test Key Resistance Around 21

Twitter $TWTR jumped from 17.14 at the close of the 10/25 session to about 20.30 at the close of the 10/26 session on top of slightly better-than expected earnings. Here's a summary from Business Insider:

Here are the key numbers from Twitter's Q3 earnings:

  • Earnings (adjusted): $0.10 a share versus $0.05 expected.
  • Revenue: $590 million versus $587 million expected, down 4% from the year-ago period.
  • Monthly active users: 330 million, up from 326 million in the previous quarter and an increase of 4% from the year-ago period.
  • Daily active user growth: Up 14% from the year-ago period.

...more on

That 14% growth was key because the Q2 showed 0% growth compared to Q2 in 2016. 
Another key component to this report was the fact Twitter projects a first profitable quarter for Q4. 
Also note that Twtitter's ad revenue has declined 8% year over year, but other revenues and licensing has improved 22% over the same period. (CNBC)

TWTR Daily Chart

(click to enlarge)

Rangebound to Bullish?
- Since 2016, TWTR has been trading in a consolidation range between roughly 14 and 21, except for a pop to 25.20 in Sept/Oct 2016 which quickly dissipated as TWTR retreated even more sharply. 
- Now, after the Q3 earnings rally, TWTR is basically attacking the consolidation range around 21. 
- If price can close above 21.10 this week, we might be seeing a push towards 25.
- Now, if TWTR pulls back, I would like to see support around 20. It should not fall back below 19, or else the mode is likely still consolidation and not bullish.