Twitter, Inc. (NYSE:TWTR) may be due to rebound by as much as 9% in the coming weeks

Twitter, Inc. (NYSE:TWTR) may be due to rebound by as much as 9% in the coming weeks

Twitter, Inc. (NYSE:TWTR) may be due to rebound by as much as 9% in the coming weeks

Twitter Inc.’s (TWTR) stock crumbled following its third quarter results at the end of October, with shares now 35% off their 2019 highs. The sharp decline leaves the equity up by less than 2% in 2019, well below the S&P 500’s increase of over 24%. However, the stock may be due to rebound by as much as 9% in the coming weeks based on the technical chart and bullish options betting. However, any rebound may only prove to be short-lived.

The company reported earnings of $0.17 per share on October 24, below consensus analysts estimates for $0.20. Additionally, revenue came in at $823.7 million which was well below estimates for $874.03 million. The big hit came when the company guided fourth quarter revenue to a range of $940 million to $1.01 billion, which was less than estimates of $1.06 billion.

Technical Rebound?

Additionally, based on the technical chart the stock may have even further to increase should that option bet prove to be correct. Currently, the stock is rising towards a level of technical resistance at $29.70, and should the stock rise above that price, it may go on to climb to the next major level of resistance at $31.90, a gain of about 9% from its price on November 15. However, should the stock fail to rise over resistance at $29.70, it could face a decline to its next level of support at roughly $27.20.

Technical Indicators

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 34.07.

The projected upper bound is: 32.94.

The projected lower bound is: 25.45.

The projected closing price is: 29.19.

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 20 white candles and 30 black candles for a net of 10 black 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 57.1429. This is not an overbought or oversold reading. The last signal was a buy 11 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 27.58. 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 74 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 -7. This is not a topping or bottoming area. The last signal was a buy 1 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 5 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.240 at 29.490. Volume was 5% below average (neutral) and Bollinger Bands were 53% wider than normal.

Open     High      Low     Close     Volume___
29.180 29.730 29.010 29.490 2,836,828
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 29.27 36.99 36.66
Volatility: 17 67 54
Volume: 2,842,562 3,056,733 3,041,002

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 19.6% 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 44 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an oversold condition. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.

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