Twitter, Inc. (NYSE:TWTR) shares rose Thursday after Bank of America Merrill Lynch upgraded the stock

Twitter, Inc. (NYSE:TWTR) shares rose Thursday after Bank of America Merrill Lynch upgraded the stock

Twitter, Inc. (NYSE:TWTR) shares rose Thursday after Bank of America Merrill Lynch upgraded the stock

Twitter shares rose Thursday after Bank of America Merrill Lynch upgraded the stock, citing increased usage by younger people and more engagement by its current users.

Bank of America raised the stock to buy from neutral and took the firm’s price target to $39 from $31. The stock opened Thursday’s trading 2 percent higher, to $32.93.

“Churn remains elevated, but improving metrics in the 18-29 demographic suggest more younger users are turning to Twitter,” the firm said Thursday in a note to clients, citing a social media user survey. “Nine percent of users indicated they planned to user Twitter more next year, up from 6 percent in our 2Q survey.”

Twitter closed Wednesday at $32.25, up more than 30 percent over the last 12 months. Facebook is down more than 20 percent over that same period.

Along with the strong user data, the firm also believes Twitter will be a “strong play” as more advertising dollars go to video ads online.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 36.57.

The projected lower bound is: 29.64.

The projected closing price is: 33.10.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

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.

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 94.2774. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 9 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 58.14. 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 10 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 157.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 9 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 3 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed up 0.840 at 33.090. Volume was 10% above average (neutral) and Bollinger Bands were 69% wider than normal.

Open High Low Close Volume___
33.040 33.500 32.260 33.090 5,151,593

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

Moving Averages: 10-period 50-period 200-period
Close: 30.11 32.27 33.76
Volatility: 49 70 70
Volume: 4,037,233 4,565,822 5,214,735

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 2.0% below 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 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.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH