Twitter, Inc. (NYSE:TWTR) Advances 5%
Twitter stock rallied to a three-year high in the low $40s on Monday but is quickly approaching resistance that’s likely to trigger a multi-month reversal that traps trend followers who have booked impressive returns since the social media giant broke out in February. As a result, placing trailing stops or taking partial profits at this time looks like a conservative approach to risk management.
The February breakout mounted tough resistance at the 2014 low near $30, setting off a euphoric buying wave that has now reached within three points of the 2013 IPO opening print, which marks hidden resistance for stocks that fail to hold their gains after coming public. An uptrend could stall for months at this barrier, shaking out a large supply of weak hands before turning higher and testing historic highs.
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 35.28.
The projected upper bound is: 46.32.
The projected lower bound is: 41.28.
The projected closing price is: 43.80.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 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 4 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 91.7974. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 21 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 86.61. 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 66 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 138.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 14 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 27 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 2.070 at 43.490. Volume was 35% above average (neutral) and Bollinger Bands were 76% wider than normal.
Open High Low Close Volume___
42.500 44.330 42.500 43.490 8,292,729
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 38.93 32.64 25.87
Volatility: 41 49 61
Volume: 12,503,946 5,991,280 4,948,585
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.
TWITTER INC gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TWITTER INC is currently 68.1% 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 very strong flows of volume into TWTR.N (bullish). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 28 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an overbought condition.