Twitter, Inc. (NYSE:TWTR) stock has more than 15% upside potential

Twitter, Inc. (NYSE:TWTR) stock has more than 15% upside potential

Twitter, Inc. (NYSE:TWTR) stock has more than 15% upside potential

Last week ended on a sour note for stock prices. The rally in bonds that the U.S. Federal Reserve started with their uber dovish statement took its toll on the indices. It’s typical that stocks and bonds move inversely to each other.

Among the wreckage on Wall Street, there were a few stocks that still shined. Twitter(NYSE:TWTR) was one that had a strong week while most struggled. Last week’s performance wasn’t a fluke for TWTR, however. Since March 8, TWTR stock has had a 12% rally. So it has momentum on its side and therein lies the opportunity.

There are decent odds for a bigger rally to unfold especially if the markets in general recover from Friday’s weakness.

Technically, TWTR stock behaves well according to the patterns that present themselves. Currently there is technical reason to expect a rally opportunity. But first there are hurdle levels in the way.

First, it is important to remember that TWTR is a momentum stock so it moves fast in both directions. This makes it difficult to trade with strong conviction because it almost never gives a clear signals to determine good entry points.

If the bulls can overcome Friday’s high they can spark the rally and this should invite the first wave of momentum buyers. $35.50 per share is the next zone where sellers might try to stall the move.

But the biggest battle in this opportunity will probably come from the resistance area between $35.50 and $37 per share. That is where the bears have laid out a cluster of failures from last August, October and December. TWTR stock fell more than 15% each time so the sellers would not want to lose the zone without a fight thereby creating resistance.

But the big carrot is the gap above the resistance from the crash that TWTR had on earnings last July. So ideally the target of the opportunity is all the way to $42 per share but the bulls have to take the first steps and those could  come this week.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 34.94.

The projected lower bound is: 30.22.

The projected closing price is: 32.58.

Candlesticks

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 26 white candles and 23 black candles for a net of 3 white candles.

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 66.9364. This is not an overbought or oversold reading. The last signal was a sell 0 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 58.91. 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 60 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 126.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 9 period(s) ago.

Rex Takasugi – TD Profile

TWITTER INC closed down -0.430 at 32.590. Volume was 19% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open High Low Close Volume___
32.880 33.290 32.280 32.590 3,192,814

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

Moving Averages: 10-period 50-period 200-period
Close: 31.78 31.74 33.80
Volatility: 27 47 67
Volume: 3,733,060 3,458,125 4,560,623

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 3.6% 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 4 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