Twitter, Inc. (NYSE:TWTR) lower after Evercore ISI analyst Kevin Rippey cut his rating on the stock to underperform from in-line
Shares of Twitter Inc. TWTR, -1.66% are off 1.6% in premarket trading Thursday after Evercore ISI analyst Kevin Rippey cut his rating on the stock to underperform from in-line. “While we believe 3Q’s specific tech issues can be addressed in coming quarters, if Twitter is to approach the level of long-term revenue growth implied by consensus, the prerequisite will likely be ongoing growth in R&D spend at rates faster than those of revenue,” he wrote.
Rippey said that Twitter engaged in “substantial underinvestment” in its ad product while it was focused on driving user-growth momentum. He cut his rating on the stock to $25 from $42. Late Wednesday, prosecutors said that the Saudi government recruited a pair of Twitter employees to spy on critics. Twitter shares have dropped 2.8% so far this year, while the S&P 500 SPX, +0.27% has increased 23%.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 34.97.
The projected upper bound is: 32.75.
The projected lower bound is: 24.84.
The projected closing price is: 28.80.
A white body occurred (because prices closed higher 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 19 white candles and 30 black candles for a net of 11 black candles.
An on-neck line occurred. This is a bearish pattern where prices should move lower when the white candlestick’s (i.e., the most recent) low is penetrated.
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.
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 43.7565. This is not an overbought or oversold reading. The last signal was a buy 4 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 19.40. 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 67 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 buy 6 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 12 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.490 at 29.050. Volume was 40% above average (neutral) and Bollinger Bands were 207% wider than normal.
Open High Low Close Volume___
28.990 29.590 28.635 29.050 4,130,732
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 29.81 39.02 36.79
Volatility: 17 70 55
Volume: 4,728,416 3,075,813 3,068,957
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 21.0% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 37 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an oversold condition. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.
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