In this daily bar chart of TWLO, below, we can see that prices made a small double-top pattern around $285. Because this is not a proper top formation (a true double top should be months in the making and decline at least 10% from the peak to the trough) I do not see it as a major sell signal.
Prices are below the cresting 50-day moving average line and still well above the rising 200-day moving average line. The daily On-Balance-Volume (OBV) line shows strength from late March to very early August which helps to confirm and support the price advance. The OBV line has weakened since early August and signals a shift to more aggressive selling. The Moving Average Convergence Divergence (MACD) oscillator has been weakening since late May and is now close to crossing below the zero line for a potential outright-sell signal.
In this weekly bar chart of TWLO, below, we can see a large outside week and lower close. Leveraged traders will take this move as a quick-turning sell signal. The 40-week moving average line is pointed up and bullish. The weekly OBV line shows that it has been stalled the past two months and suggests a shift from aggressive buying to aggressive selling. The MACD oscillator has narrowed and is close to a bearish crossover. A crossover on the MACD oscillator will be a take profits sell signal or a sell in an uptrend.
In this daily Point and Figure chart of TWLO, below, we can see that the software is projecting a potential downside price target in the $160. The chart also shows a significant zone of underlying support so TWLO may not decline all that much.
Bottom line strategy: the Point and Figure chart (above) shows the potential for a decline to around $160 on TWLO, but there is a zone of potential support from $210 to $180 from May into the middle of July that could operate as a location for buyers to enter again. Back on July 1 we wrote that "Aggressive traders could go long TWLO at current levels risking a close below $200. The $245 area is our price objective for now." Hopefully traders took some profits at $245 and higher. If TWLO finds renewed buying interest above $195 I would take that as a sign of strength.