Twitter, Inc. (NYSE:TWTR) Clean Up Strategy Makes It A Winner
Twitter (NYSE:TWTR) had a remarkable run last year. In the face of extreme negativity about social media stocks, the company outperformed its main rival Facebook (NASDAQ:FB), gaining 20% as Facebook plunged 26%.
But that period of outperformance is losing its steam. After last year’s rally, Twitter stock has climbed 8% in 2019 while Facebook has powered ahead and jumped in excess of 20%. This divergence is a sign that the Twitter bulls’ resolve is weakening and investors are probably seeing more value in the company’s much bigger rival.
Despite Twitter’s slow move higher, we think Twitter is better positioned to withstand the selling pressure that comes after every negative event. Last week, for example, when Facebook stock bore the major brunt of the selling pressure following the live streaming of a massacre in New Zealand, dropping 2.5% on Friday, Twitter shares hardly moved, finishing the week up 0.6% at $31.22. The stock fell 0.5% to $31.08 yesterday vs Facebook’s loss of an additional 3.3%.
It’s becoming more difficult to pick winners and losers in the social media investing universe, given the nature of challenges these companies are facing. Social media platforms are in a constant state of firefighting, while their shares remain highly vulnerable to negative events.
What separates Twitter from its peers in this environment is its aggressive strategy to clean up its network and adopt a more transparent way of dealing with challenges. This approach may not show higher user growth in the short-run, but the initiative and effort to get it right will put the company on a more solid footing in the long-run.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 33.69.
The projected lower bound is: 28.90.
The projected closing price is: 31.30.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 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 62.6667. 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 51.14. 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 56 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 80. This is not a topping or bottoming area. The last signal was a buy 6 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 up 0.190 at 31.270. Volume was 2% above average (neutral) and Bollinger Bands were 71% narrower than normal.
Open High Low Close Volume___
31.150 31.495 30.880 31.270 3,972,812
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 30.89 31.70 33.92
Volatility: 24 48 68
Volume: 3,283,105 3,477,316 4,942,245
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 7.8% 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 0 periods.