Twitter, Inc. (NYSE:TWTR) charts have clearly strengthened since August
In the daily chart of TWTR, below, we can see a number of price gaps — some of them in the uptrend from January to June and also a big downside gap in July. Gaps can be unnerving if one is wrongly positioned so let’s just look at the price action from early August.
Many market observers would call this price action from August an inverse head-and-shoulders bottom pattern. I have a number of issues with that idea/observation — the size, the location and the volume — the pattern is too small, the location is not after a long decline and the volume does not build through the pattern. However, you may find it easy to “see” the pattern. Let’s just forget about name tags and call it an accumulation or bullish pattern. Prices have closed above the 50-day moving average line and the slope of the line has turned positive. This week TWTR closed above the flat 200-day moving average line.
Now look at the On-Balance-Volume (OBV) line, which shows a rise from early August to now telling us that buyers of TWTR have been more aggressive. The trend-following Moving Average Convergence Divergence (MACD) oscillator has just turned up from the zero line for a new outright go long signal.
This all sounds bullish. Right?
Overall, the bias in prices is: Upwards
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 32.94.
The projected upper bound is: 39.34.
The projected lower bound is: 32.75.
The projected closing price is: 36.04.
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 29 white candles and 21 black candles for a net of 8 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 77.9639. This is not an overbought or oversold reading. 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 63.57. 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 60 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 166.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 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 5 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.360 at 35.890. Volume was 3% below average (neutral) and Bollinger Bands were 29% narrower than normal.
Open High Low Close Volume___
36.290 36.450 35.300 35.890 4,356,795
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 33.48 31.71 34.07
Volatility: 63 68 68
Volume: 5,119,312 4,816,448 5,249,532
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 5.3% 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 1 periods.