Twitter, Inc. (NYSE:TWTR) drop nearly 30% because expectations are too high

Twitter, Inc. (NYSE:TWTR) drop nearly 30% because expectations are too high

Twitter, Inc. (NYSE:TWTR) drop nearly 30% because expectations are too high

Twitter shares are down 2 percent Wednesday. The company’s shares are up 82.2 percent so far this year through Tuesday versus the S&P 500’s 4.5 percent gain.

On Friday after the market close the Washington Post reported Twitter was ramping up its efforts in closing fake accounts. The article stated about 70 million accounts were suspended in May and June, with a similar pace continuing in July. Shares of Twitter closed down 5.4 percent Monday.

Twitter’s chief financial officer Ned Segal clarified in a tweet Monday “most accounts we remove are not included in our reported metrics as they have not been active on the platform for 30 days or more, or we catch them at sign up and they are never counted.”

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 47.11.

The projected lower bound is: 41.17.

The projected closing price is: 44.14.

Candlesticks

A white body occurred (because prices closed higher 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 33 white candles and 17 black candles for a net of 16 white candles.

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 38.1742. This is not an overbought or oversold reading. The last signal was a sell 15 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 54.15. 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 sell 11 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 -163.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. 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 sell 11 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.120 at 43.870. Volume was 6% below average (neutral) and Bollinger Bands were 53% narrower than normal.

Open High Low Close Volume___
42.840 44.100 42.220 43.870 5,689,696

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

Moving Averages: 10-period 50-period 200-period
Close: 44.45 38.73 28.62
Volatility: 55 45 63
Volume: 5,555,109 6,367,543 5,325,166

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 53.3% 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 48 periods.

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