Twitter, Inc. (NYSE:TWTR) fears of rising costs and government regulation

Twitter, Inc. (NYSE:TWTR) fears of rising costs and government regulation

Twitter, Inc. (NYSE:TWTR) fears of rising costs and government regulation

Shares of Twitter Inc. (NYSE:TWTR) declined 19.1% in September, according to data from S&P Global Market Intelligence, amid fears of rising costs and government regulation.

To be sure, Twitter fell more than 11% in the days following a House of Representatives hearing on Sept. 5, in which members of Congress grilled CEO Jack Dorsey over everything from its ability to prevent hate speech to allegations of unjustified censorship and political bias.

Perhaps unsurprisingly, at least one analyst weighed in toward the end of September warning that rising expenses could do material harm to Twitter’s profits in its third-quarter report later this month.

One the one hand, if that observation turns out to be on point — and with shares of Twitter still up more than 50% over the past year as of this writing — I suspect investors could be in for more pain in the coming weeks. On the other hand, if Twitter shows signs that its recent acceleration in revenue and earnings growth is sustainable in spite of higher costs (and with the looming threat of increased regulation notwithstanding), the stock could quickly recoup its recent losses.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 29.32.

The projected lower bound is: 24.48.

The projected closing price is: 26.90.

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 28 white candles and 22 black candles for a net of 6 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 29.7500. This is not an overbought or oversold reading. The last signal was a buy 20 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 34.68. 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 17 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 -229.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 buy 11 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.210 at 27.000. Volume was 22% above average (neutral) and Bollinger Bands were 68% narrower than normal.

Open High Low Close Volume___
26.360 27.580 26.190 27.000 6,992,828

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

Moving Averages: 10-period 50-period 200-period
Close: 28.21 31.21 32.95
Volatility: 63 50 68
Volume: 4,930,724 4,229,539 5,475,176

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 18.1% below 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 volume flowing into and out of TWTR.N at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 13 periods.

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