Twitter, Inc. (NYSE:TWTR) entering a new chapter with a recent surge above a potential buy point
After a much-hyped IPO in November 2013, social media giant Twitter (TWTR) has struggled to maintain any significant stock price appreciation. But the company may be entering a new chapter with a recent surge above a potential buy point. Twitter stock is forming a new base in the current stock market, so the stock isn’t a buy right now.
So for now, be patient and wait for a new breakout opportunity.
Twitter is a social networking service that allows users to post and interact with messages known as ‘tweets.’ Twitter competes with the likes of FANG stock Facebook (FB) and re-emergent Snap (SNAP).
Twitter Stock: Fundamentals
Twitter generates money from selling ads to businesses. The company is attempting to become the go-to source of update for live events, like sports, news and entertainment. Higher traffic and engagement levels will increase ad demand on Twitter, boosting ad prices and the company’s sales.
Investors also look closely at Twitter’s new metric, Monetizable Daily Active Users, or mDAUs, to discern if the platform is gaining or losing popularity.
Twitter stock surged over 15% on April 23 after the company’s stronger-than-expected earnings results. In the most recent quarter, earnings and sales increased 131% and 18% vs. the year-ago period, respectively. Analysts on consensus expected the company’s earnings to decline 6%.
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 35.52.
The projected upper bound is: 39.90.
The projected lower bound is: 34.22.
The projected closing price is: 37.06.
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 26 white candles and 24 black candles for a net of 2 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 14.7252. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 13 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 48.44. 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 5 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 -165.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 9 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 sell 4 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.340 at 36.930. Volume was 27% below average (neutral) and Bollinger Bands were 40% wider than normal.
Open High Low Close Volume___
37.040 37.520 36.600 36.930 2,474,644
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 38.82 34.86 32.43
Volatility: 42 49 68
Volume: 2,828,624 3,247,469 4,162,063
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 13.9% above its 200-period moving average and is in an upward trend. Volatility is high 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 39 periods.
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