Twitter, Inc. (NYSE:TWTR) plunged this summer after it reported a drop of a million users

Twitter, Inc. (NYSE:TWTR) plunged this summer after it reported a drop of a million users

Twitter, Inc. (NYSE:TWTR) plunged this summer after it reported a drop of a million users

There were several factors contributing to the drop, concerns over trade tensions between the US and China and rising interest rates being the most prominent. Tech companies tend to be highly leveraged, so can be vulnerable to rising interest rates. The EU’s planned tax on technology firms is also putting them under pressure.

The first to report, on Wednesday, will be Microsoft, releasing first-quarter results. Attention will be focused on whether the company’s Azure cloud computing service is driving growth. The platform has been used by a number of governments recently.

Next up, “Super Thursday” will see Alphabet, Amazon, Snap Inc and Twitter all report on the same day. For Alphabet, analysis from Hargreaves Lansdown highlights the recent €4.3bn fine the EU slapped on Google, but says it expects growth in revenue numbers. Separately, the company has been investing heavily in areas such as self-driving cars and cloud computing.

Amazon is expected to have enjoyed strong revenue growth, according to the analysts, with services such as Prime and Alexa making increasing progress, as is the company’s web services division. Snap Inc, parent of social media app Snapchat, will also report third-quarter results. Investors saw some light earlier this month when chief executive Evan Spiegel said that he hoped the company would turn a profit next year.

Finally for Thursday, Twitter will also make a third-quarter announcement. In July, its shares dropped by more than 20% after it reported a drop of a million users following its action to delete fake and offensive accounts. At the time, the social media platform told investors to expect user numbers to fall further as it took action to block fake accounts.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 31.20.

The projected lower bound is: 26.34.

The projected closing price is: 28.77.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 69.3152. This is not an overbought or oversold reading. The last signal was a sell 0 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 46.59. 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 23 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 0 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 17 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed down -0.460 at 28.830. Volume was 8% below average (neutral) and Bollinger Bands were 68% narrower than normal.

Open High Low Close Volume___
29.390 29.790 28.680 28.830 4,519,327

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

Moving Averages: 10-period 50-period 200-period
Close: 28.57 30.81 33.10
Volatility: 68 51 68
Volume: 4,919,588 4,283,241 5,524,007

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 12.9% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. 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 19 periods.

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