Twitter, Inc. (NYSE:TWTR) investors wondering whether it will again fall
For more than eight months, Twitter (NYSE: TWTR ) stock has seen little movement. Since last August, TWTR has reached the $35 per share level twice – only to retreat. For the first time since December, Twitter stock again trades near that key level, leaving investors wondering whether it will again fall. Still, given the specter of a possible triple top, the range on TWTR stock should decide the timing on buying the stock, not the buy case itself.
Twitter stock should – and almost certainly will – rise above its range. When this move finally occurs is another matter. Considering the PE ratios and expected profit growth rates alone, TWTR will have to break out of the range at some point. For this reason, TWTR stock is a buy, but only at the right time.
Two key levels will determine that time. Those wanting to buy tend to focus on the double top in Twitter stock. However, traders need to remember that TWTR has also established a double bottom. It has twice bounced back from levels of just below $27 per share. If it reaches that point, TWTR stock becomes a clear buy. Considering the fundamentals, I do not see Twitter breaking the lower range as a likely possibility, but I would sell if that occurred.
The other buy point comes just beyond the top of the range. Since last August, Twitter stock has established a record high of $37.14 per share. I think if it can stay above that price, traders can safely assume that the stock has finally broken through its range. From there, I think TWTR could retest its 52-week high of $47.79 per share.
Fundamentals, charts, and the competitive situation of TWTR stock itself make the stock a buy. Now, the question becomes when. Knowing when to buy comes with patience. Investors should wait for Twitter stock to either retest the lows of the range, or to break out of the range on the high side. At either point, the equity will probably move higher.
The key hinges on understanding how the range affects the movements in TWTR. By understanding that pattern, traders can not only purchase a stake in a stable company, but they can also buy at a time that will maximize their profits in Twitter stock.
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 32.83.
The projected upper bound is: 36.72.
The projected lower bound is: 32.53.
The projected closing price is: 34.63.
A black body occurred (because prices closed lower 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 26 white candles and 23 black candles for a net of 3 white candles.
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 58.1281. This is not an overbought or oversold reading. The last signal was a sell 1 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 64.55. 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 1 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 61. This is not a topping or bottoming area. The last signal was a sell 1 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 buy 22 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.170 at 34.580. Volume was 50% below average (consolidating)(neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
34.750 34.870 34.410 34.580 1,881,183
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 34.29 32.13 33.13
Volatility: 17 42 66
Volume: 2,313,253 3,326,902 4,242,933
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 4.4% above its 200-period moving average and is in an upward trend. Volatility is low as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into TWTR.N (mildly bullish). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 17 periods.
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