Twitter Inc (NYSE:TWTR) has pulled back into major support for investors looking to buy. The exact entry would be $18.50. The current price of Twitter is $18.62, -0.36 (-1.90%). The reason for the buy level is multi-factored. Below I list them.

1. The daily 20 and 50 moving averages converge at $18.50. This forms a technical major support level called a neck-tie. When two major moving averages converge they create an epic support level.

2. The buy level of $18.50 is also a 50% Fibonacci retrace level. Fibonacci levels are huge support/resistance points on stock charts. The fact that this is at the same price as the neck-tie adds major fuel to the buy point of $18.50.

Twitter is likely to bounce off this level, potentially back to the recent highs of $21.00. There continues to be major speculation that Twitter will eventually get bought out as well.

By Pro-Trader

Annabelle Trader