Twitter, Inc. (NYSE:TWTR) buyers should cautiously stake their claim
With major events such as the October meltdown and the trade war with China swirling around us, I want to clarify my position on social-media firms.
The easy one is Snap. This is a company that, unless a miracle occurs, will have trouble maintaining relevancy. Both competitive challenges and a narrow demographic focus hurt SNAP stock.
On the other end of the spectrum, I’m still long-term bullish on Facebook. However, I concede that the markets have not shared my opinion so far. Much of the negative sentiment about social media directly blames Facebook.
This brings us to Twitter stock. I’m not crazy about the company but I’m not necessarily against speculators slowly building a position. For starters, I’m not as horrified about Twitter’s active-user decline as much as Snap’s equivalent metric. While Twitter user growth has definitely stagnated, the platform has proven its longevity. We didn’t see worrying slowdowns until recently.
In contrast, Snapchat is much younger and is already petering out. This suggests — no, screams — that SNAP has lost relevancy. You can’t say that about TWTR, which remains a viable channel for businesses, celebrities, and news.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 37.74.
The projected lower bound is: 31.54.
The projected closing price is: 34.64.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 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 spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 84.6841. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 68.33. 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 buy 32 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 117.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 26 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.130 at 34.620. Volume was 7% above average (neutral) and Bollinger Bands were 15% wider than normal.
Open High Low Close Volume___
34.530 34.910 33.830 34.620 5,233,688
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 31.41 30.60 33.42
Volatility: 92 66 71
Volume: 6,744,043 4,841,472 5,655,166
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 3.6% 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 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 8 periods.