Twitter Stock News and Forecast: TWTR soars as Elon Musk buys stake

Twitter stock soars after Elon Musk discloses a large stake.
TWTR stock is currently over 20% higher in Monday's premarket.
TWTR stock closed Friday at $39.31 but is trading at nearly $50 in the premarket.

Ivan Brian FXStreet

Twitter stock (TWTR) is trending on its own social media platform as news breaks of Elon Musk taking a significant stake. Elon Musk of course is a major user of the social media site and is one of the most-followed people on Twitter. Elon Musk has over 80 million followers on the platform.

Twitter Stock News

News broke this morning that Tesla boss Elon Musk has purchased a 9.2% stake in Twitter. The news immediately saw TWTR stock soar and rally strongly. At present, TWTR shares are up over $49 in the premarket and heading for $50. The news makes Twitter stock one of the top trending names on various social media sites including Twitter itself. The stake is through the Elon Musk Recoverable Trust. The trust owns just over 73 million shares in the platform.

Twitter Stock Forecast

This move corrects a lot of the recent fall and brings Twitter's stock back to where it was trading in November of last year. Now Twitter is near resistance at $52, a high volume area shown by the large volume bars to the right of our chart below. Also, this is where the 200-day moving average stands and so adds to the resistance profile. This may stall the move for now until further clarity on what Elon Musk intends to do with the stake if anything. Support is at $40.

Twitter (TWTR) stock chart, daily

Author

Ivan Brian

FXStreet

Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.

AUD/USD hangs close to monthly lows, still defends 0.7100 ahead of Fed decision

AUD/USD retains its negative bias for the third straight day, defending 0.7100 while trading close to a monthly low in Wednesday's Asian session on Wednesday. The US Dollar stands firm near a two-week high as the anticipated Fed rate hike and oil-driven inflation fears continue to push US bond yields to a multi-year high. Furthermore, escalating Middle East tensions benefit the safe-haven buck and weigh on the risk-sensitive Aussie.

USD/JPY holds firm above 155.00, awaits Fed policy announcements

USD/JPY climbs to a fresh one-week high above 155.00 in the Asian session on Wednesday amid a bullish US Dollar. Oil-driven inflation fears, along with the anticipated Fed rate hike, continue to support surging US bond yields. Moreover, rising US-Iran tensions underpin the USD's reserve currency status. The pair, however, remains below the mid-155.00s as bulls seem hesitant ahead of the Fed decision later today and the BoJ meeting, starting on Thursday.

Gold traders seem noncommittal below $4,350; eyes Fed rate decision

Gold clings to modest intraday gains through the first half of the European session, albeit it lacks follow-through buying and remains below $4,350. The US Dollar eases from a two-week high amid some profit-taking, offering support to the commodity. Traders, however, seem hesitant to place aggressive directional bets and opt to wait on the sidelines heading into the key central bank event risk.

Cardano's bearish breakout warns of a 15% downside risk

Cardano (ADA) hovers around $0.1900 at press time on Wednesday after a 6% decline the previous day, breaking below a crucial support level. Declining on-chain activity across the Cardano ecosystem, with reduced transaction count and Real Economic Value (REV), suggests waning user demand.

Fed decision in focus

Starting with the most important, the Fed decision. Heading into the event, data showed a rather punchy US August jobs report, which, you will likely recall, triggered a hawkish Fed rate repricing in rates markets. However, the recent US August CPI print mattered more.

How Japan became the World's Banker and why that era may be ending

Japan's ultra-low interest rates helped finance trillions of dollars in global investments for more than a decade, making the Japanese Yen one of the world’s cheapest sources of funding. With the Bank of Japan expected to tighten policy again this week, that advantage may be entering a new phase. While most major economies raised interest rates, Japan remained the world's outlier.