• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Doug Kass
    • Bruce Kamich
    • Jim Cramer
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • Trifecta Stocks
  1. Home
  2. / Investing
  3. / Stocks

My Message for Twilio Investors

Here's what the charts for the cloud messaging platform stock reveal.
By BRUCE KAMICH
Mar 22, 2021 | 09:30 AM EDT
Stocks quotes in this article: TWLO

In his final "Executive Decision" segment of Friday's Mad Money program, Jim Cramer checked in Jeff Lawson, chairman and CEO of cloud communications platform Twilio (TWLO) .

Lawson explained that Twilio is a platform that allows developers to communicate with their customers, whether that be via voice, text, email or video. And while Twilio is best known for alerting you when your delivery arrives or when your flight is running late, the company also donates 1% of its profits to non-profit entities.

We were not bullish on TWLO in our review of March 5 writing that, "TWLO could bounce in the short-run but the indicators suggest we could see further weakness into the $285-$250 area as March unfolds. Avoid the long side for now."

Let's check on the charts again.

In the daily bar chart of TWLO, below, we can see that the shares have been making a topping pattern the past four months. TWLO is trading below the 50-day moving average line but above the rising 200-day moving average line.

The On-Balance-Volume (OBV) line has been stalled-to-weakening the past four months. The Moving Average Convergence Divergence (MACD) oscillator is trying to signal a cover shorts buy signal.

In the weekly Japanese candlestick chart of TWLO, below, we can see a top reversal pattern in February. Prices have declined and are getting closer to a test of the 40-week moving average line which is starting to crest.

The weekly OBV line has turned soft and tells us that sellers of TWLO are being more aggressive. The MACD oscillator has crossed to the downside for a take profit sell signal.

In this daily Point and Figure chart of TWLO, below, we can see a potential downside price target in the $298 area.

In this weekly Point and Figure chart of TWLO, below, we can see that the software is now projecting the $165 area as a tentative price objective.

 

Bottom-line strategy: While the fundamental story of TWLO may remain constructive, the chart picture remains bearish. I would continue to avoid the long side of TWLO.

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are prohibited from trading individual securities.

TAGS: Investing | Stocks | Technical Analysis | Software & Services | Technology | Mad Money | Executive Interview

More from Stocks

Market's 'Superficial' Highs Are Only Skin Dip

James "Rev Shark" DePorre
Apr 9, 2021 4:36 PM EDT

You can't call this market overbought when so much of it isn't participating.

Pinterest: Double Top or Breakout Pending?

Bruce Kamich
Apr 9, 2021 3:00 PM EDT

What would I do in this case? Here's the logical choice.

I'm Continuing to Build a Position in Skillz

Timothy Collins
Apr 9, 2021 2:24 PM EDT

SKLZ shows explosion moves to the upside when it emerges from the oversold area.

Royalty Pharma Shows Promise

Bruce Kamich
Apr 9, 2021 1:10 PM EDT

Here's how traders should play RPRX right now.

Making the Best of the Peculiar Market Action

James "Rev Shark" DePorre
Apr 9, 2021 12:17 PM EDT

Trading in biotech stocks and a particular SPAC play are on my mind.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 04:44 PM EDT PAUL PRICE

    Pretty Incredible + Hard to Believe

  • 11:18 AM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    The 5 Pillars of Exceptional Trading
  • 08:05 AM EDT BOB LANG

    Bitcoin vs. Gold: Which Should You Invest In Now?

    Read my article TheStreet here!
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2021 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login