TWLO finds buyers again around 96.77
Twilio Inc. Class A (TWLO) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
TWLO ended Thursday at 100.69 gaining $3.86 (3.99%), significantly underperforming the S&P 500 (6.24%). Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (TWLO as at Mar 26, 2020):
Thursday's trading range has been $5.91 (6.08%), that's below the last trading month's daily average range of $7.43. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for TWLO. Prices continued to consolidate within a tight trading range between 93.00 and 102.68 where it has been caught now for the last three trading days.
Two candlestick patterns are matching today's price action, the Bullish Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 100.65 (now S1), which is likely to act as support going forward. The last time this happened on March 5th, TWLO actually lost -3.98% on the following trading day. After having been unable to move lower than 95.76 in the prior session, the stock found buyers again around the same price level today at 96.77.
Twilio shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to previous High" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Twilio. Out of 214 times, TWLO closed higher 58.41% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 57.48% with an average market move of 1.89%.