By: Ben Myers
Twitter Inc (NYSE:TWTR) announced last week that the company was suing the US federal government to loosen restrictions that prevent full disclosure of government demands for Twitter user data. The company maintains that the government asking for user data from the company is a clear violation of the First Amendment Right of free speech.
The legal counsel for the company said that the current norms and regulations are not allowing tech companies to be fully transparent with users on social media platforms. He further states that the government currently prohibits and even criminalizes events wherein social media companies responding to user queries regarding National Security Agency snooping user accounts. Twitter Inc (NYSE:TWTR) has been one of the outperforming stock in social media over the past few months, as analyst believe that the company has been able to monetize to a great extent its mobile platform which is considered to be a huge positive in the medium term.
On the daily charts for Twitter Inc (NYSE:TWTR), the stock has been in a strong uptrend over the last few weeks. The formation of a golden cross is being seen huge positive by the bulls. The support for the stock continues to remain near the $50 level. On the upside, traders are closely watching the $58 level in the near term. The momentum indicator for Twitter Inc (NYSE:TWTR) are giving a buy signal indicative of the strong buy side momentum. The relative strength index for Twitter Inc (NYSE:TWTR) on the other hand have given a sell signal.
Actionable Insight:
Short Twitter Inc (NYSE:TWTR) if it falls below $50 with a short term target at $45 with a strict stop loss above $54
Long Twitter Inc (NYSE:TWTR) if it moves above $55 with a short term target at $58 with a strict stop loss below $52.50
