Twitter, Inc. (NYSE:TWTR) Target $21
Twitter’s ability to keep costs low despite fierce competition and heightened regulatory scrutiny will not last.
For the first two quarters of 2018, Twitter has reported operating expense growth at an impressive 0 percent and 3 percent, respectively. But a quick glance at the company’s recent filings at the Securities and Exchange Commission appear to tell a different tale.
For a business locked in competition with industry giants and under siege from regulators, reported operating expense growth has been amazingly low. After digging into the most recent 10-Qs, we would argue that true underlying cost growth has actually been materially higher in the range of 13 percent to 15 percent.
And those costs aren’t likely to retreat anytime soon.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 33.94.
The projected upper bound is: 33.13.
The projected lower bound is: 23.88.
The projected closing price is: 28.50.
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 23 white candles and 27 black candles for a net of 4 black candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
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 33.0848. This is not an overbought or oversold reading. The last signal was a buy 2 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 29.29. 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 buy 2 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 -102.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 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 sell 6 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed down -1.260 at 28.860. Volume was 20% below average (neutral) and Bollinger Bands were 8% narrower than normal.
Open High Low Close Volume___
29.000 29.270 28.430 28.860 4,455,603
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 30.94 35.76 32.40
Volatility: 53 79 68
Volume: 4,165,510 4,721,620 5,421,686
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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
TWITTER INC is currently 10.9% below its 200-period moving average and is in an upward trend. Volatility is 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 1 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an oversold condition.