Twitter, Inc. (NYSE:TWTR) significant potential for growth
Twitter is one of the dominant social media players, and has significant potential for growth, provided management continues to act prudently.
Its bears (rightly) point to Twitter’s multi-year revenue stagnation and slowing MAU growth, thus believing its current valuation is far too high.
While Twitter has near-term downside potential, the long term future for investors looks bright.
An area of focus during the earnings report will be user growth, as Twitter (TWTR) has reportedly slashed millions of suspicious accounts. The suspensions and shutdowns of accounts by Twitter are part of its effort to clear up the platform, allegedly used in an attempt to illegitimately sway the 2016 U.S. elections.
Twitter, a provider of online news and messaging services, is currently a member of the IBD 50, a flagship screen of leading growth stocks. These are companies that show strong relative price strength and top-notch fundamentals, among other traits.
Twitter stock is up 26% since breaking out from a cup-with-handle base at a buy point of 33.88 on May 21.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 46.64.
The projected lower bound is: 40.40.
The projected closing price is: 43.52.
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 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.
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 28.8412. This is not an overbought or oversold reading. The last signal was a sell 23 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 50.13. 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 19 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 -127.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 7 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 sell 19 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -0.110 at 43.310. Volume was 51% below average (consolidating) and Bollinger Bands were 60% narrower than normal.
Open High Low Close Volume___
43.460 43.820 42.400 43.310 2,896,594
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 43.99 40.76 29.70
Volatility: 30 47 63
Volume: 3,658,418 6,281,391 5,352,262
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 45.8% above its 200-period moving average and is in an downward trend. Volatility is low 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 5 periods.