Twitter, Inc. (NYSE:TWTR) reports third quarter earnings on Thursday
Judging by its chart, investors aren’t expecting any earth-shaking, positive surprises when Twitter (NYSE:TWTR) reports third quarter earnings on Thursday, October 25.
Shares of this social media giant have plummeted—currently trading at $29, the stock is down 39% since it reached a multiyear high this summer of nearly $48. In fact, during the third quarter, Twitter was the worst performing S&P 500 stock.
There are a number of critical catalysts currently pressuring Twitter shares. We believe their earnings call will highlight the issues, but show no real solutions just yet.
In the short run, Twitter stock doesn’t have any positive triggers that could break this bearish cycle and move its shares higher. We expect further weakness in Twitter shares as the company intensifies its efforts to remove millions of suspicious accounts that post misleading links, sensitive information or disturbing content.
As well, such efforts will push costs higher and depress the company’s profitability, increasing post-earnings downside risk. We see Twitter stock trading in the $15-20 range over the next three months.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 31.56.
The projected lower bound is: 26.69.
The projected closing price is: 29.12.
A white body occurred (because prices closed higher 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.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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 54.8708. 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 48.74. 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 24 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 36. 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 18 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.350 at 29.180. Volume was 42% below average (neutral) and Bollinger Bands were 67% narrower than normal.
Open High Low Close Volume___
29.050 29.280 28.310 29.180 2,813,743
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 28.64 30.76 33.12
Volatility: 69 51 68
Volume: 4,769,445 4,287,557 5,521,605
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 11.9% below its 200-period moving average and is in an upward 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 bullish on TWTR.N and have had this outlook for the last 0 periods.
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