Twitter, Inc. (NYSE:TWTR) calls were buzzing during its price increase

Twitter, Inc. (NYSE:TWTR) calls were buzzing during its price increase

Twitter, Inc. (NYSE:TWTR) calls were buzzing during its price increase

U.S. stock futures are trading higher in early morning trading following stronger-than-expected bank earnings. Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) both topped analyst estimates.

Ahead of the bell, futures on the Dow Jones Industrial Average are up 0.46% and S&P 500 futures are higher by 0.3%. Nasdaq-100futures have added 0.18%.

In the options pits, call volume outpaced puts even as overall volume remained near average levels. Specifically, about 16.9 million calls and 15.3 million puts changed hands on the session.

At the CBOE, the single-session equity put/call volume ratio rose to 0.70. Meanwhile, the 10-day moving average climbed to 0.66.

Here were three stocks with elevated options activity. JPMorgan Chase (NYSE:JPM) saw renewed options interest after reporting earnings. Netflix (NASDAQ:NFLX) jumped 6.5% to extend an already impressive rally. Finally, Twitter (NYSE:TWTR) calls were buzzing during its price increase.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 35.84.

The projected lower bound is: 29.01.

The projected closing price is: 32.43.

Candlesticks

A black body occurred (because prices closed lower 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 28 white candles and 22 black candles for a net of 6 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend (which appears to be the case with TWITTER INC). It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 55.2921. This is not an overbought or oversold reading. The last signal was a sell 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 54.45. 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 14 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 75. This is not a topping or bottoming area. The last signal was a sell 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 7 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed down -0.550 at 32.470. Volume was 54% below average (consolidating) and Bollinger Bands were 24% wider than normal.

Open High Low Close Volume___
33.100 33.300 32.440 32.470 2,102,781

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 31.72 32.17 33.85
Volatility: 54 69 67
Volume: 3,604,971 4,245,525 5,114,418

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.

Summary

TWITTER INC is currently 4.1% below its 200-period moving average and is in an upward trend. Volatility is high 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 4 periods.

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