Twitter, Inc. (NYSE:TWTR) Stock Oversold
To say shares of Twitter (NYSE:TWTR) have been under pressure would be an understatement. Shares have been clobbered over the past few days, with TWTR stock falling almost 30% since Jul. 25.
On Friday, Twitter disappointed investors with lower-than-expected second quarter monthly active user (MAU) numbers and guided a decline of “mid-single-digit millions” in monthly users from Q2.
The stock dropped 20.5% on Friday and another 8% on Monday, reflecting a 27% decline over two days. Trading up 2.6% on Tuesday afternoon at $32.20, Twitter stock reflects a 34.1% gain year-to-date (YTD), still outperforming the S&P 500’s 5.5% return over the same period.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 37.02.
The projected lower bound is: 26.69.
The projected closing price is: 31.85.
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 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.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
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 3.5820. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 29 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 26.43. This is where it usually bottoms. 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 sell 25 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 -179.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 25 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.490 at 31.870. Volume was 96% above average (neutral) and Bollinger Bands were 109% wider than normal.
Open High Low Close Volume___
32.030 32.470 31.070 31.870 11,826,878
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 40.02 41.35 30.30
Volatility: 140 83 71
Volume: 6,363,015 7,002,375 5,507,968
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 5.2% above its 200-period moving average and is in an downward 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 out of TWTR.N (mildly bearish). Our trend forecasting oscillators are currently bearish on TWTR.N and have had this outlook for the last 11 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an oversold condition.