Twitter (TWTR) came under fire earlier this week.
The stock dropped from a high of $52 to $48.30. All after the social networking site banned President Trump from tweeting. The company noted his account posed a “risk of further incitement of violence” after the incident at the U.S. Capitol.
However, “Twitter’s move against the outgoing president, whose account had more than 88 million followers, was the first permanent suspension for a head of state, and it’s likely to spark furious debate about the role tech companies play in regulating speech,” quoted by the New York Post.
It’ll be an interesting issue going forward.
Looking at Twitter as a trader, the stock could refill its recent bearish gap, near-term. Despite the friction of the ban, the stock has become oversold on RSI, MACD, and Williams’ %R. It’s also catching support right under its 50-day moving average, where it tends to bounce.
This could be a great, immediate-term contrarian trade idea. All you’d want to do is jump in, wait for a potential bounce from oversold conditions, and get out. There’s no telling what kind of long-term impact its recent ban will have on the stock.
All we want to do is make some quick money from it, and move on.