Twitter, Inc. (NYSE:TWTR) shares are being guided upward

Twitter, Inc. (NYSE:TWTR) shares are being guided upward

Twitter, Inc. (NYSE:TWTR) shares are being guided upward

It has been incredibly erratic action, but progressive action nonetheless. That is, Twitter shares are being guided upward, squeezed toward the narrowing tip of an ascending wedge pattern. More recently, TWTR stock has been finding support at levels that suggest the buyers are working on forcing a breakout.

That won’t be easy, particularly given how overbought Twitter shares are since the bottom made in early 2017. But, the pattern that has taken shape thus far isn’t atypical of initial public offerings. Every one has to fall apart sooner than later, but most everyone eventually shrugs it off and works its way into a bullish mode.

  • The bigger-picture in only evident through the long-term lens of the weekly chart, framed by light blue lines. The upper boundary of that pattern currently rests at $44.70.
  • Zooming into the daily chart another wedge becomes evident. Framed by red dashed lines, a rising trading range has materialized. There’s still room for wide swings though.
  • Since May, the gray 100-day moving average line and the purple 50-day line have both stepped up as technical support.
  • Although it’s not ideal, the weekly chart also suggests a pretty good cup-and-handle pattern. The brimline, of course, is the ceiling that connects all the major peaks going back to mid-2014.

Technical Indicators

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 38.07.

The projected upper bound is: 45.05.

The projected lower bound is: 39.72.

The projected closing price is: 42.38.

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 26 white candles and 24 black candles for a net of 2 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 72.3948. This is not an overbought or oversold reading. The last signal was a sell 14 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 59.62. 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 11 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 98. 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.590 at 42.290. Volume was 17% below average (neutral) and Bollinger Bands were 16% narrower than normal.

Open     High      Low     Close     Volume___
41.700 42.840 41.390 42.290 2,469,594
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 41.29 38.41 34.80
Volatility: 38 43 54
Volume: 2,567,960 2,792,302 3,392,904

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 21.5% above its 200-period moving average and is in an upward trend. Volatility is high 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 32 periods.

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