Twitter, Inc. (NYSE:TWTR) stock is cheaply valued
Twitter (TWTR) makes for a strong investment case. Typically, I recommend investors not to get too involved with the narrative the company puts out, but instead to zealously focus on its free cash flow potential. Having said that, Twitter has enough of the two to make for a rewarding investment.
And best of all, priced at $30 billion market cap, its shares are not expensive.
Twitter’s ability to generate strong free cash flows, together with a balance sheet with plenty of cash, leaves Twitter with enough flexibility to continue on its mission of improving overall user engagement and getting advertisers to improve their ROI, through direct response ads.
As investors, not only does the story seem highly attractive, but most importantly, investors are not being asked to pay up for a ‘story stock’.
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 37.77.
The projected upper bound is: 44.15.
The projected lower bound is: 38.64.
The projected closing price is: 41.40.
A white body occurred (because prices closed higher 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 24 white candles and 26 black candles for a net of 2 black candles.
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 43.2146. This is not an overbought or oversold reading. The last signal was a sell 4 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 59.86. 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 1 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 45. This is not a topping or bottoming area. The last signal was a sell 2 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 24 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.950 at 41.320. Volume was 2% below average (neutral) and Bollinger Bands were 49% wider than normal.
Open High Low Close Volume___
40.960 41.640 40.780 41.320 2,865,408
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 40.98 37.48 34.28
Volatility: 69 46 58
Volume: 4,303,214 2,799,716 3,596,764
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 20.5% above its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 22 periods.