Communication services company Twilio (TWLO) gapped lower Wednesday, as traders reacted to a weaker than expected second-quarter sales forecast issued Tuesday night. Let's check the charts and indicators.
In this daily bar chart of TWLO, below, I can see that prices are in a position to retest the November/December lows. Prices trade below the negatively sloped 50-day moving average line and the declining 200-day line. The On-Balance-Volume (OBV) line is weak and so is the Moving Average Convergence Divergence (MACD) oscillator.
In this weekly Japanese candlestick chart of TWLO, below, I see a weak picture. Prices are in a longer-term downtrend and trade below the declining 40-week moving average line. The weekly OBV line is pointed down and the MACD oscillator is bearish.
In this daily Point and Figure chart of TWLO, below, I can see a potential downside price target in the $39 area.
In this weekly Point and Figure chart of TWLO, below, I can see that prices (for now) have reached a downside price target of $46.
Bottom line strategy: TWLO may, or may not, hold its November/December lows but the indicators are not in a positive mode so new lows will not be a big surprise.
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