Madrid
Short

Buy the rumor By the numbers first.

NYSE:TWTR   Twitter Inc
330 4 6
Buy the rumor? Seriously?

By the fundamentals first

Twitter Market Cap : 34 B
Twitter Debt : 2 B
Twitter Free Cash flow : -120 M

Google             Free cash flow : 11.4 B

Is this rumor founded on solid ground? Google             would have to meaningfully dent its cash flow to even consider this buy. And just by the market cap, not considering the debt value yet. So from this perspective logic says no. In my opinion, this buy will remain as a rumor.

Next, the technicals in the big picture say that Twitter has been in a consolidating triangle. On January this year it was at the bottom of the support line when the "First rumor" spreaded, this boosted the price to the upper side of the consolidating triangle, good, perfect timing, this move was expected from the technical point of view, and it was amplified after this boost. When it started to decline heading back down to the support line of the triangle, boom baby! "The rumor" is spreaded again but this time with a lower average volume and a strong momentum divergence, at the top of the channel resistance level and trying to reach the previous high of 55.

By the way, I see a repeating pattern from September last year from the technical point of view, it hit the upper resistance of the consolidating triangle and went to the 30's level.

My rumor is that this will hit back the 50 level, a lovely psychological target and it could hit the lowest part of the channel at 46.
nice analysis,
thank you
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Fantastic
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Great job on outlining your analysis. "AGREE".
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Madrid timwest
Thank you Tim. I love this site, the technical and fundamental tools it provides are awesome.
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