Twitter, Inc. (NYSE:TWTR) bearish flag that’s formed
A bearish flag that’s formed following TWTR stock’s post-earnings trend-line breakdown isn’t entirely fake news either. But nor is it the only technical truth on Twitter’s daily price chart. And that could be good news as well for some bulls.
For value-seeking investors TWTR has experienced a steep, but far from uncommon correction of 35%. It’s the kind of decline, if purchased, that can lead to great returns over time. But there’s more too for contrarian-oriented Twitter bulls to consider. Shares are currently oversold, still maintain a series of higher lows relative to the April / May uptrend and are wedged in a support zone backed by Fibonacci and the 200-day simple moving average.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 37.35.
The projected upper bound is: 37.83.
The projected lower bound is: 27.47.
The projected closing price is: 32.65.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.
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 55.6381. This is not an overbought or oversold reading. The last signal was a buy 1 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 32.08. 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 1 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 -55. This is not a topping or bottoming area. The last signal was a buy 3 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 sell 30 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.310 at 32.670. Volume was 29% below average (neutral) and Bollinger Bands were 153% wider than normal.
Open High Low Close Volume___
33.070 33.600 32.551 32.670 4,177,351
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 34.69 41.26 30.65
Volatility: 147 84 72
Volume: 7,090,906 7,146,116 5,558,573
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 is currently 6.6% above its 200-period moving average and is in an downward 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 out of TWTR.N (mildly bearish). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 16 periods.