The original post is from May 6th. Then there was this post from February, Why Twitter (TWTR) Should Go On Your “Stocks To Short” List, when Twitter was sitting at around $50 a share.
Since then, Twitter (TWTR) has clearly broken below wedge support. Suggesting that there is much more immediate downside ahead. Facebook (FB) is holding on, but barely so. When we combine all of the above with the fact that the overall stock market is in a massive bubble and overdue for a correction, it doesn’t look good. Well, unless you have a short position in both stocks.
Original Post:
Let’s take a quick look at two charts. Facebook (FB) and Twitter (TWTR).This is rather simple. Fundamentaly speaking, both companies are massively overpriced. Technically, Twitter is on the verge of breaking below a massive muti-year rising wedge.
Should it do so, I wouldn’t be surprised to see Twitter below $15 a share over the next 12-18 months. Facebook is about to break below a major/important support level. The problem is, Facebook has massive gaps all the way down to $20 a share. Gaps that must be closed sooner or later. That is not a good sign.
Hmm, I wonder what happens next.
Twitter (TWRT) Is Breaking Down. Is Social Media On Death’s Door? Google