Twitter shares rise the most in nearly four weeks on Monday, the stock’s short selling eases

Investors holding short positions in Twitters stock seemed to have been closing their trades so far during the current month, with the share price rebounding after a nearly 30% drop during the past year.

Twitter shares registered their largest daily surge since January 4th during Mondays session. The stock went up 2.23% ($0.37) to $16.94, after touching a daily high at $17.10, or a level not seen since January 19th ($17.15). In the week ended on January 29th the shares of the social network lost 0.06% of their market value compared to a week ago, which marked a second consecutive period of decline. However, the stock has extended its advance to 3.93% so far during the current month, following an 11.84% slump in December. For the entire 2016, Wal-Mart shares plummeted 29.56%.

According to Ihor Dusaniwsky, the managing director of research at financial analytics company S3, short selling of Twitters stock has decreased by almost 20% so far this year to $733 million. Investors, who went short on Twitter and closed their trades in recent weeks, suffered net losses of approximately $11.5 million. On the other hand, short selling of the social networks stock generated a net profit of $160 million in 2016.

There was a cannonade of bets last year that Twitter would be acquired, but however, negotiations with potential suitors went awry.

Short selling encompassed approximately 44 million Twitter shares in mid-January, which equaled 6.2% of the networks outstanding stock, Nasdaq figures showed. In comparison, short selling of Twitter equaled 9.5% of the companys outstanding stock at the end of October last year.

Twitter Inc is expected to report on quarterly performance on February 9th.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, todays levels of importance for the Twitter stock are presented as follows:

R1 – $17.00
R2 – $17.07
R3 (Range Resistance – Sell) – $17.13
R4 (Long Breakout) – $17.32
R5 (Breakout Target 1) – $17.54
R6 (Breakout Target 2) – $17.65

S1 – $16.88
S2 – $16.81
S3 (Range Support – Buy) – $16.75
S4 (Short Breakout) – $16.56
S5 (Breakout Target 1) – $16.34
S6 (Breakout Target 2) – $16.23

By using the traditional method of calculation, the weekly levels of importance for Twitter Inc (TWTR) are presented as follows:

Central Pivot Point – $16.66
R1 – $16.98
R2 – $17.40
R3 – $17.72
R4 – $18.05

S1 – $16.24
S2 – $15.92
S3 – $15.50
S4 – $15.09