During the time the rumor was creating a frenzy buy the short selling was raising too, does it make sense? It only means that the sellers were outsmarting the market with an old story that the market still buys today. Do you remember when TWTR was hovering over the 50-55 levels? by that time previous to the ER there was a "Leak" and the market sold off 30 minutes before the closing bell? Well you might remember the buyout rumor that was spread too at that time. All public financial media and the talking heads were chatting about why it made sense for GOOGL to buy TWTR . However, taking a look at the numbers and the financial statements and the dumping from the insiders that simply didn't make sense. Currently we can see the growth in users along with the growth in revenue are going down. (Ref. https://www.bloomberg.com/gadfly/articles/2016-09-01/twitter-investors-can-t-get-enough-takeover-chatter ). TWTR is a great concept, and an awfully managed company that became the gold mine of speculative capital.
The story repeats itself and those who ignore it are doomed to repeat it.
After the "Rumor" faded away and all the greed was knocked out by a jump from the cliff , (does it sound familiar?) the share price came back to the trading range we've seen for the last weeks. At this time, the price is around 50% of the trading range, dangling on the edge of the momentum indicators which are exiting the oversold area threatening to take another nose dive.
levels to watch: H:20.32, L:13.73, 50%: 17.00