Morgan Stanley said in a filing that it had a 5.6% stake in Twitter, Inc. (NYSE:TWTR), shares jumped

Morgan Stanley said in a filing that it had a 5.6% stake in Twitter, Inc. (NYSE:TWTR), shares jumped

Morgan Stanley said in a filing that it had a 5.6% stake in Twitter, Inc. (NYSE:TWTR), shares jumped

Twitter shares jumped more than 4% on Wednesday after Morgan Stanley said in a filingwith the US Securities and Exchange Commission that it has a 5.6% stake in the company.

The bank – one of Twitter’s initial public offering underwriters in 2013 – owned a little more than 43.3 million shares as of December 31, according to the filing.

The move on Wednesday extended the rally in Twitter shares so far this year, which has amounted to an 11% gain year-to-date. Still, shares have fallen 34% from their 52-week high hit last June.

Last week, the stock took a hit after the company reported quarterly earnings. Though Twitter reported revenue and profits that topped analyst expectations, it said monthly active users fell by 9 million to 321 million.

Overall, the bias in prices is: Downwards.

By the way, prices are vulnerable to a correction towards 31.97.

The projected upper bound is: 34.72.

The projected lower bound is: 27.51.

The projected closing price is: 31.12.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 31 white candles and 19 black candles for a net of 12 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 24.7511. This is not an overbought or oversold reading. The last signal was a buy 0 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 46.33. 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 buy 33 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 -58. This is not a topping or bottoming area. The last signal was a buy 1 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 4 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.730 at 31.120. Volume was 2% above average (neutral) and Bollinger Bands were 22% narrower than normal.

Open High Low Close Volume___
30.550 31.840 30.550 31.120 4,647,962

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

Moving Averages: 10-period 50-period 200-period
Close: 32.18 31.91 34.10
Volatility: 72 73 68
Volume: 4,764,272 4,336,930 4,981,587

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 8.7% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 23 periods.

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