Twitter, Inc. (NYSE:TWTR) Big Improvements are ‘Already Priced In’
Twitter has quietly been one of the best performing US stocks this year. It’s up more than 80% this year, but has flown under the radar because of the big gains from tech giants Netflix and Amazon.
- Macquarie Research lowered its rating on shares of Twitter to “neutral” from “buy” on Wednesday.
- “After recent rise in the stock, valuation will likely limit upside from current levels,” the firm said in a note to investors.
- The firm also raised its price target on Twitter shares to $42 from $36.
In April, Macquarie Research raised its rating to Buy on Twitter, citing buying opportunities as the company drew negative headlines that weighed on shares. Since then, shares have surged 50%.
At the time, Macquarie noted that Twitter was improving its profitability and had strong momentum.
“While we expect business fundamentals to continue to improve … the valuation, after the recent rise in the stock, will likely limit upside from current levels,” Macquarie said.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 46.70.
The projected lower bound is: 40.46.
The projected closing price is: 43.58.
A black body occurred (because prices closed lower 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.
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 58.0316. This is not an overbought or oversold reading. The last signal was a sell 20 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 50.33. 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 sell 16 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 -134.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 16 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -1.370 at 43.340. Volume was 28% below average (neutral) and Bollinger Bands were 57% narrower than normal.
Open High Low Close Volume___
44.130 44.750 42.740 43.340 4,272,563
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 44.55 40.10 29.31
Volatility: 52 47 63
Volume: 5,239,108 6,334,021 5,354,161
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 47.9% above its 200-period moving average and is in an downward trend. Volatility is low as compared to the average volatility over the last 10 periods. 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 2 periods.