When I looked at shares of Twilio ( TWLO) on May 10, I feared we would see new lows before long. However, the stock did not make new lows for the move down and now the chart patterns look bullish.
Let's revisit the charts again so I can get back on the right track.
In the daily bar chart of TWLO, below, I can see that the shares made a succession of lows in November and December and then retested those lows in May. Prices have bounced up on increased trading volume and that is a positive sign.
The On-Balance-Volume (OBV) line has turned upwards and shares are breaking above the 50-day and 200-day moving average lines. The trend-following Moving Average Convergence Divergence (MACD) oscillator is enroute to crossing above the zero line for an outright buy signal.
In the weekly Japanese candlestick chart of TWLO, below, I can see the stock's long and painful decline to a low in late 2022. Prices are rallying above the 40-week moving average line.
The weekly OBV line is bouncing up in May to create its own bottom pattern. The MACD oscillator has improved greatly but is still slightly below the zero line.
In this daily Point and Figure chart of TWLO, below, I can see a potential upside price target in the $94 area.
In this weekly Point and Figure chart of TWLO, below, I see a $96 price objective.
Bottom-line strategy: Traders could try to buy TWLO around $58 risking to $52. The $94-$96 area is my price target for now.
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I suspect that the catch up trade that has finally gotten in gear is what will turn divided sentiment into one cohesive bunch of bulls.
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