The surge in Twitter Inc. TWTR may be over, at least for now. The stock crashed into a wall of sellers around the $50 level.
There are a significant number of investors offering shares at the level because of buyer’s remorse.
Last year after a big sell-off, shares of Twitter found support around $50. The stock rallied from there and the investors who bought were happy.
But then TWTR reversed and fell back through the support. Many of the investors who didn’t sell now regret buying. Many decide to get out, but only if they can do so without losing money.
As a result, they placed their sell orders at $50. If there are enough of these sell orders, it will cause resistance to form. That’s what happened here and it may keep a ceiling on the price.
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