Twitter, Inc. (TWTR) has largely traded sideways the past 12 months. There were a number of sharp declines but prices managed to rally to a late April/early May peak. Another decline or correction unfolded in May and June with another upturn this month.
The $64,000 question is whether prices are finally ready to break out for a test of the 2018 highs around $48 or will we be disappointed yet again. Let's check out the latest charts and indicators.
In this daily bar chart of TWTR, below, we can see that prices are finally above the declining 50-day moving average line and the rising 200-day moving average line.
The daily trading volume does not show a sustained rise or expansion in volume but the On-Balance-Volume (OBV) line does trend higher from last July to early May. From May to now the OBV line is flat/neutral.
The trend-following Moving Average Convergence Divergence (MACD) oscillator just turned up from below the zero line for a cover shorts buy signal. Further strength in the stock could push the oscillator up to an outright go long signal.
In this weekly bar chart of TWTR, below, we can see the base pattern in 2016/2017 followed by the big rally into 2018. Prices corrected sharply but managed to hold the $26 support area.
TWTR is above the rising 40-week moving average line and the weekly OBV line has been very stable the past 18 months suggesting that investors in TWTR have largely held those positions the past year.
The weekly MACD oscillator moved above the zero line in late March for a buy signal.
Today the two moving averages that make up this indicator are on top of each other.
In this Point and Figure chart of TWTR, below, we can see a potential $45 price target being projected.
Bottom line strategy: The share price of TWTR can react sharply to the downside when investors and traders are disappointed. Overall it looks like TWTR bulls have a slight advantage. My money (assuming I could trade individual stocks) would be on the upside but traders need to be able to risk a close below $34 to buy TWTR here.