Twitter, Inc. (NYSE:TWTR) deserves a special consideration

Twitter, Inc. (NYSE:TWTR) deserves a special consideration

Twitter, Inc. (NYSE:TWTR) deserves a special consideration

Not all social media stocks are created equal. Consider Twitter (NYSE:TWTR), for example. Experts judge it on its user metrics strictly from the counts. Wall Street is obsessed with the number of active members, and this is a problem for the stock.

This also ties it to stocks like Facebook (NASDAQ:FB), which exacerbates things. The Facebook metrics are massive and would make any other company look like a failure. Plus there is the risk over privacy issues.

Twitter is the Google of news agencies. It should be the norm of how news is disseminated in this new web-based world. My news comes to me first and directly to my phone. People are shocked to learn this, and within a few minutes they become users themselves.

Not everyone’s going to be tweeting, but anyone can receive global news about anything they find interesting within seconds. And therein lies a huge opportunity. Amazon (NASDAQ:AMZN) changed the game with regards to shopping. Twitter changed the game with regards to news. But the difference is Twitter has not told the world yet.

Fundamentally, it sells at a 17 price-to-earnings ratio which is not bloated but it is hampered by the metrics. They are a short-term liability to the Twitter stock during earnings reports. Analysts are quick to judge it on the headlines, so I don’t think it has yet unlocked its potential.

Overall, the bias in prices is: Sideways.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 35.73.

The projected lower bound is: 29.64.

The projected closing price is: 32.69.

Candlesticks

A white body occurred (because prices closed higher 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 30 white candles and 20 black candles for a net of 10 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 59.8909. This is not an overbought or oversold reading. The last signal was a sell 16 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 52.29. 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 49 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 -8. This is not a topping or bottoming area. The last signal was a buy 1 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 10 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed down -0.210 at 32.610. Volume was 46% below average (neutral) and Bollinger Bands were 45% narrower than normal.

Open High Low Close Volume___
32.410 33.095 32.380 32.610 2,522,794

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

Moving Averages: 10-period 50-period 200-period
Close: 32.34 30.72 34.04
Volatility: 53 64 68
Volume: 3,495,884 4,701,533 5,255,973

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 4.2% 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 25 periods.

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