Twitter, Inc. (NYSE:TWTR) Twitter stock is up 31% in the last month
Suddenly, it seems everyone loves Twitter Inc (NYSE:TWTR). Twitter stock is up 31% in the last month, against a 4% gain in the NASDAQ Composite. The shares are up more than 80% so far in 2018 and closed at $46.76 on Jun. 14.
This gives Twitter stock a market cap of over $32.5 billion, on trailing-year revenue of under $2.5 billion. Analysts are expecting earnings of 17 cents per share, over $127 million, for the current quarter.
Analysts are now pounding the table for the stock. JPMorgan Chase & Co. (NYSE:JPM) has a $50 price target on Twitter.
Is it time to jump on the bandwagon? Not so fast.
Twitter, in short, is a momentum stock. People are buying it because people are buying it. Never mind that you’re paying 13 times revenue; those revenues are growing. Never mind that there’s no price-to-earnings multiple; there soon will be.
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 36.68.
The projected upper bound is: 49.81.
The projected lower bound is: 44.45.
The projected closing price is: 47.13.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 92.8402. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 23 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 90.03. This is where it usually tops. 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 68 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 143.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 16 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 29 period(s) ago.
Rex Takasugi – TD Profile
TWITTER INC closed up 2.690 at 46.760. Volume was 39% above average (neutral) and Bollinger Bands were 109% wider than normal.
Open High Low Close Volume___
44.580 46.795 44.530 46.760 8,564,570
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 41.11 33.34 26.16
Volatility: 44 50 61
Volume: 13,253,210 6,095,396 5,002,190
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 78.8% 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 very strong flows of volume into TWTR.N (bullish). Our trend forecasting oscillators are currently bullish on TWTR.N and have had this outlook for the last 30 periods. Our momentum oscillator is currently indicating that TWTR.N is currently in an overbought condition.