Reasons why Twitter CEO quits; technical effects on share

The Twitter CEO Dick Costolo will leave twitter in July as the company declared yesterday. Twitter’s co-founder Jack Dorsey will replace Costolo temporarily until they name a new CEO.

Actually, the event wasn’t surprise, as the previous declared target of a billion users hasn’t been reached.

The abovementioned reason was not the only one, but I will let the next charts, which offer quarterly financial comparisons between Twitter and Facebook tell you why Dick Costolo should leave twitter.

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** Note: Comparisons made over quarterly studies.

As per the effect on the share, the sudden event has caused some kind of upside actions today since many investors have welcomed the news, but the problem is, the bigger picture is very sensitive due to Twitter share approaching the lows recorded in 2014 and current price is below twitter’s first trading day.

From a broad technical perspective, prices could fall further if traders succeed in taking the share below 2014 lows, which should support it.

Daily Chart for (TWTR) share

TWITTER

Of note, pressures from trend indicators are big enough to delay any corrective attempts.

To conclude, there is no significant support existing between 34.00 and 29.60 regions and breaching 34.00 could trigger panic sell-off actions.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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