Twitter, Inc. (NYSE:TWTR) A good time to sell

Twitter, Inc. (NYSE:TWTR) A good time to sell

Twitter, Inc. (NYSE:TWTR) A good time to sell

Twitter’s first-quarter earnings and user growth were wildly unexpected. These numbers represent a surprise aberration from Twitter’s own expected future growth.

Its long-term revenue outlook remains as weak as it was this Spring. Any user growth at all, much less robust user growth as unsustainable as last quarter, is not in the cards. And Twitter expects its operating costs to rise by 20% in 2019.

Value investors looking to buy and hold equities as part of a long term savings portfolio, but who like to do some managing that falls short of day trading, may do well to cash in on this week’s news by letting go some of their Twitter stock.

Day traders who make a profit from the daily rise and fall of various securities might take this opportunity to unload Twitter for some cash and buy it back when the market cools down.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

By the way, prices are vulnerable to a correction towards 33.34.

The projected upper bound is: 42.55.

The projected lower bound is: 37.38.

The projected closing price is: 39.97.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 24 black candles for a net of 1 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more 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 77.0362. This is not an overbought or oversold reading. The last signal was a sell 8 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 83.51. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 8 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 447.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 buy 0 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 5.380 at 39.770. Volume was 305% above average (trending) and Bollinger Bands were 0% narrower than normal.

Open High Low Close Volume___
37.250 40.530 37.210 39.770 14,943,975

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

Moving Averages: 10-period 50-period 200-period
Close: 35.10 32.46 32.81
Volatility: 85 47 68
Volume: 3,629,924 3,241,116 4,258,736

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 gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TWITTER INC is currently 21.2% above 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 moderate flows of volume into TWTR.N (mildly bullish). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 24 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an overbought condition.

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