Twitter, Inc. (NYSE:TWTR) breaking out, and we could see more gains ahead
- Goldman Sachs increases its price target on Twitter to $55 from $40 and says the company’s efforts to drive and monetize user engagement will help contribute to 25 percent upside.
- The company has reportedly purged more than 70 million accounts in May and June as a part of its effort to rid the site of disinformation.
- MKM Partners also reiterates its buy rating on the stock and commended its efforts to eradicate “bad actors” on the site.
Twitter shares rose Thursday after Goldman Sachs raised its price target for the social media stock and told clients that despite recent worries about the crackdown on fake accounts, the purge will be a net positive for user engagement.
Goldman Sachs analyst Heath Terry increased his price target on Twitter to $55 from $40, arguing that the company’s efforts to drive and monetize user engagement will help contribute to 25 percent upside over the next year.
“Twitter continues to build on ‘Information Quality’ efforts they first spoke about on the fourth-quarter earnings call by moderating unwanted behavior, spam accounts, and low quality tweets through product innovation, acquisition, or more active removal of violating accounts and developer applications,” the analyst wrote. “Our ad partner checks suggest that these efforts have generally been well received by advertisers and … are contributing to incremental ad dollars flowing onto the platform.”
Terry, who reiterated his buy rating on the San Francisco-based company, also highlighted the company’s goals of creating better products and services on the site, particularly in hosting other forms of content.
“Twitter continues to focus on the relevance of its product for its core user base, particularly on Video where the company highlighted in the first quarter improved click through rates,” he added. “Feature introduction over the last six months including Bookmarks, video timestamps, embedding live events into notifications and the newsfeed, and redesigning the explore tab showcase the company’s focus on personalizing the core Twitter product.”
Twitter shares fell more than 5 percent earlier in the week after The Washington Post reported that the company has purged more than 70 million accounts in May and June as a part of its effort to rid the site of disinformation.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 48.57.
The projected lower bound is: 42.55.
The projected closing price is: 45.56.
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 33 white candles and 17 black candles for a net of 16 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 45.9197. This is not an overbought or oversold reading. The last signal was a sell 16 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 58.48. 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 12 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 73. This is not a topping or bottoming area. The last signal was a buy 0 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 12 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 1.390 at 45.260. Volume was 29% below average (neutral) and Bollinger Bands were 53% narrower than normal.
Open High Low Close Volume___
44.700 45.340 44.360 45.260 4,268,959
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 44.61 39.03 28.77
Volatility: 56 45 63
Volume: 5,502,408 6,354,460 5,332,931
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 57.3% above its 200-period moving average and is in an upward trend. Volatility is relatively normal 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 bullish on TWTR.N and have had this outlook for the last 49 periods.
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