Twitter, Inc. (NYSE:TWTR) Can’t Break the Ceiling

Twitter, Inc. (NYSE:TWTR) Can’t Break the Ceiling

Twitter, Inc. (NYSE:TWTR) Can’t Break the Ceiling

This year hasn’t been especially fun for Twitter (NYSE:TWTR) shareholders. Twitter stock started 2018 with a bang, jumping from 2017’s closing price of $24 to June’s high around $47. Since then, however, TWTR stock has dropped as low as $26.19 and has risen only to the $32 range. Twitter stock is also back in a downtrend after bumping into a key technical ceiling.

That’s clearly not the kind of strength the bulls were hoping for.

And yet, a careful look at Twitter’s past and projected results reveals there’s nothing inherently wrong with it. Indeed, the microblogging platform has never had a better grip on what it is and how it should monetize itself. The weakness of Twitter stock is purely sentiment-driven. While fears could pressure Twitter stock in the near-term, longer-term investors may want to buy the beaten-down shares now because the company is doing everything it’s supposed to be doing.

Can’t Break the Ceiling

The underlying reasons for the doubts about Twitter stock aren’t tough to figure out. TWTR’s rival, Facebook (NASDAQ:FB), noted in July that its sales growth would be slowing going forward, and the social networking giant’s third-quarter results showed that its warning was accurate.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 34.15.

The projected lower bound is: 28.12.

The projected closing price is: 31.13.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

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 29.2335. This is not an overbought or oversold reading. The last signal was a sell 14 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 45.00. 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 47 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 -112.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 14 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 sell 8 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed down -0.490 at 31.120. Volume was 71% below average (consolidating) and Bollinger Bands were 44% narrower than normal.

Open High Low Close Volume___
31.300 31.960 31.120 31.120 1,333,922

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

Moving Averages: 10-period 50-period 200-period
Close: 32.41 30.59 34.02
Volatility: 53 64 68
Volume: 3,420,894 4,674,470 5,302,823

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 8.5% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 23 periods.

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