Twitter, Inc. (NYSE:TWTR) Shayne ‘Jack’ Heffernan Turned from Neutral to Bearish
As Twitter (TWTR) reaches near one-year highs following the stock collapse after weak Q2’18 user numbers, the investment community is oddly rather neutral on the stock. As predicted in my previous research, the social-media site regularly surpasses expectations that includes a boost to revenue growth estimates. The stock still has a long runway as growth accelerates due to a combination of improved monetization metrics and active users.
No matter how one views the analyst data, the average analyst is actually negative on Twitter. Since the start of the year, the bullish analysts have switched back over to Underperform ratings while most of the Strong Buy and Buy ratings have disappeared.
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 32.42.
The projected upper bound is: 37.10.
The projected lower bound is: 32.70.
The projected closing price is: 34.90.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 22 black candles for a net of 5 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.
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 80.0574. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 10 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 70.28. This is where it usually tops. 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 buy 70 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 133.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 19 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.140 at 34.860. Volume was 47% below average (neutral) and Bollinger Bands were 15% narrower than normal.
Open High Low Close Volume___
34.790 35.060 34.520 34.860 2,022,973
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 33.67 31.98 33.29
Volatility: 23 44 66
Volume: 2,591,742 3,384,672 4,336,315
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 4.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 14 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an overbought condition.