Can an Upcoming Election Boost Twitter, Inc. (NYSE:TWTR) Stock?

Can an Upcoming Election Boost Twitter, Inc. (NYSE:TWTR) Stock?

Can an Upcoming Election Boost Twitter, Inc. (NYSE:TWTR) Stock?

Twitter TWTR has established itself as the contemporary platform for up-to-date news, whether it be on entertainment, sports, politics, or business, etc. People all over the world turn to the social media platform for updates on daily events and any other significant occurrences.

The company’s IPO in November of 2013 was received eagerly by investors; their shares opened at $26 and closed at nearly $45. This initial burst landed the company a valuation of around $31 billion.

Despite this strong start in the stock market, Twitter eventually started to experience growth problems. The fiscal year of 2015 proved to be Twitter’s biggest test, as the company’s growth became stagnant and many publications confirmed this public sentiment. These tough times brought upon many doubts about the company’s future and rumors spread about a potential takeover by other tech industry giants.

The end of 2016 provided the company a chance for rebirth from an unlikely source. Donald Trump’s involvement in the 2016 presidential race caused people to flock to Twitter to read what the candidate had to say. The presidential election that year, as well as Donald Trump’s frequent activity on the platform, drastically increased traffic on the website. This Donald Trump boost turned the tide for the company as more prominent figures have joined Twitter, trampolining the company into a popular news source and completely reconfiguring its demographic landscape.

This trend has helped the company expand its appeal, reach various demographics, and finally escape the perception of being a gossip website for younger people. Additionally, Twitter’s emergence as a public daily news forum has helped drive shares to more than double their value from a near all-time low in 2016. Thanks to this newly obtained public perception, Twitter’s been able to reemerge successfully and earn a Zacks Rank #2 (Buy).

After becoming a hotbed for breaking news, the company has been able to silence doubts about its future. Analysts expec t earnings to see solid growth through this year and next. And, Twitter’s increased social media presence has helped it earn a B rating in Growth for the Zacks Rank Style Scores.

Twitter is a company that can appeal to investors who are looking for a stock that has big growth potential. Including this stock in a portfolio could potentially have a strong payoff, especially as another presidential election is just around the corner.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 39.93.

The projected lower bound is: 34.00.

The projected closing price is: 36.97.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 25 white candles and 25 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 18.1354. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 9 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 46.87. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 15 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -104.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 14 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed down -0.440 at 36.850. Volume was 23% below average (neutral) and Bollinger Bands were 12% narrower than normal.

Open High Low Close Volume___
37.000 37.400 36.530 36.850 2,551,334

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 37.56 36.20 32.69
Volatility: 37 51 59
Volume: 2,593,834 3,140,063 3,950,065

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

TWITTER INC is currently 12.7% above its 200-period moving average and is in an downward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 7 periods.

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