Shares of Twitter, Inc. (NYSE:TWTR) are struggling to clear the important $50 level. There’s resistance, or a large group of investors, trying to sell their shares at that price point.
This isn’t surprising. The $50 level was support for the stock in May 2021 and many investors bought at this price before it moved higher.
But now the price is lower, and a number of these investors now regret buying because they’re looking at a loss. They don’t want to lose money, so as a result, they try to sell their shares at the same price for which they bought them.
If there are enough of these sell orders at a level that had previously been support, the level could convert into resistance. That’s been the case here.
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