Square rallied hard after filling a price gap a few weeks ago. Now Jack Dorsey's other company, Twitter, is doing the same thing.
Strong quarterly results on February 6 sent TWTR ripping on heavy volume. In a nutshell, better user monetization and engagement restored confidence in the social-media platform's business over the long term.
The stock has consolidated its gains as it chops along the 200-day simple moving average (SMA). It also probed the bullish gap but never filled it.
Next, the weekly chart just completed an inside candle: a higher low and lower high. It also closed a few pennies below the previous Friday. That can signal volatility is calming before movement returns.
Traders will now watch for TWTR to hold the 200-day SMA as it pushes against the $38-40 congestion area from October. Above that, the 2018 peak around $47-48 comes into play.