Twitter (NYSE: TWTR) is popular on Wall Street this year.
The social network stock has surged nearly 50% since the beginning of 2018, crushing competition from Facebook (NASDAQ:FB) and Snap (NYSE: SNAP) and tracking for its best annual performance ever.
Twitter formed a bearish head-and-shoulders pattern with a high in March, a higher high in June, and a lower high in August. That setup typically suggests the end of an uptrend. However, since then, Twitter has managed to break out above the lower high set more than three months ago.
Twitter shares took on 24 cents early Friday morning to $36.13, within sight of capturing $38.50. They last traded at that level in July.
Analysts consensus estimates suggest the company will deliver strong fourth-quarter results. The stock has struggled as investors worry about declining monthly active users. But surprisingly, the company has seen steady domestic and international advertising growth over the past three quarters.
The technical chart would suggest that the stock is nearing a technical break out should the price rise above $36.50. If that happens, the stock would likely have the room to rise to around $42.00, an increase of approximately 18% from its current price of $36.50.
Additionally, the relative strength index has been steadily trending higher, suggesting bullish momentum has been moving into the stock. Volume for the stock has also been steadily rising, which may indicate more buyers are moving into the stock.
