Twitter failed its investors by not achieving success in its IPO in contrast to its brothers Facebook and LinkedIn. Shares quickly jumped to a high of $74.60 – a gain of 58 % over the IPO price, after which dropped below it, reaching the $29 level – a loss of 39 %. Since then Twitter began a recovery, reaching previous highs due to its deep correction, started in May.
It looks like price action is contained in a downward trend channel, developing as a double zig-zag “W-X-Y”. Wave “X” retraces to the key 61.8% Fibonacci level, finding resistance at the upper trend line. The corrective nature of wave “(X)” may fool investors, but in terms of the Elliott Wave Principle, Twitter stock prices should reverse and continue their downtrend in wave (Y).
