Twitter, Inc. (NYSE:TWTR) Falls after Q2 Earnings Release

Twitter, Inc. (NYSE:TWTR) Falls after Q2 Earnings Release

Twitter, Inc. (NYSE:TWTR) Falls after Q2 Earnings Release

Despite accelerating revenue growth and a huge improvement in profitability, Twitter (NYSE:TWTR) stock still sold off after its earnings report last week. The main concern seemed to be Twitter’s declining monthly active users as management focuses on improving the health of the platform by deleting bad accounts.

Facebook and Twitter have been taking pains to satisfy their users by, say, purging millions of bot accounts, was met with fierce resistance by Wall Street, which puts both companies in a bind: how do we deliver the ROI our shareholders expect while keeping the service worth using? It’s the tightest of Gordian knots.

But at the end of the day, they must respond to the problems they’re facing, even though it’s painfully clear that there is very little distance between the rock of investor confidence and the hard place of user satisfaction in which to navigate.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 37.02.

The projected lower bound is: 26.73.

The projected closing price is: 31.88.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

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 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 5.0039. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 30 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 26.58. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 26 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 -129.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 5 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 26 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.040 at 31.910. Volume was 8% below average (neutral) and Bollinger Bands were 132% wider than normal.

Open High Low Close Volume___
32.190 32.590 31.460 31.910 5,566,548

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

Moving Averages: 10-period 50-period 200-period
Close: 38.88 41.32 30.36
Volatility: 141 83 71
Volume: 6,492,414 7,033,289 5,519,885

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 5.1% above its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. Our volume indicators reflect moderate flows of volume out of TWTR.N (mildly bearish). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 12 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an oversold condition.

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