Twitter, Inc. (NYSE:TWTR) technical goldmine
Social stocks have gotten slammed, but one has survived the sector’s meltdown.
Over the past month, Twitter has rallied nearly 18 percent, while Facebook has dropped 6 percent, Snap 10 percent and Alphabet 6 percent. In the past three months, as the rest tanked double digits, Twitter has sustained just a nearly 1 percent drop.
One technician said the charts are setting up for an even bigger pop for the social network.
Michael Bapis, managing director of Vios Advisors at Rockefeller Capital Management, said Twitter’s ubiquity should fuel its future growth.
“Everybody’s using it to make announcements from the president to CEOs to athletes. Anybody that wants an immediate announcement to go out or something to say, they’re using Twitter in today’s world. And we’re in a society where we want everything to happen immediately and that’s one of the newsfeeds,” Bapis said Wednesday on “Trading Nation.”
Twitter ended its third quarter with 326 million monthly active users, more than two-thirds of those from outside the U.S. Daily active users grew by 9 percent, though that marked its slowest quarterly increase in two years.
Overall, the bias in prices is: Sideways.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 32.86.
The projected upper bound is: 36.13.
The projected lower bound is: 30.26.
The projected closing price is: 33.20.
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 30 white candles and 20 black candles for a net of 10 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with TWITTER INC), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 40.9091. This is not an overbought or oversold reading. The last signal was a sell 9 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 55.33. 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 42 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 -59. This is not a topping or bottoming area. The last signal was a sell 9 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 3 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 0.240 at 33.150. Volume was 29% below average (neutral) and Bollinger Bands were 2% wider than normal.
Open High Low Close Volume___
32.750 33.355 32.620 33.150 3,293,189
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 33.65 30.45 33.89
Volatility: 44 63 70
Volume: 3,609,675 4,755,524 5,491,531
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 2.2% below its 200-period moving average and is in an upward trend. Volatility is high 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 18 periods.
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