TWLO runs into sellers again around 197.91
Twilio Inc. Class A (TWLO) Technical Analysis Report for May 29, 2020 | by Techniquant Editorial Team
TWLO finished the month 75.96% higher at 197.60 after gaining $6.20 (3.24%) today, significantly outperforming the S&P 500 (0.48%). Trading up to $5.49 lower after the open, Twilio managed to reverse during the session as bulls took control ending the day above its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (TWLO as at May 29, 2020):
Friday's trading range has been $5.88 (2.98%), that's far below the last trading month's daily average range of $10.94. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for TWLO.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar. Additionally, two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji. The last time a Doji showed up on May 19th, TWLO gained 4.73% on the following trading day.
After trading down to 192.03 earlier during the day, the share bounced off the key technical support level at 195.15 (S1). The failure to close below the support might increase that levels importance as support going forward. After having been unable to move above 198.70 in the prior session, the stock ran into sellers again around the same price level today, failing to move higher than 197.91.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 198.70 where further buy stops might get activated.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the Technical Indicators based market condition "RSI(14) above 70" stand out. Its common bearish interpretation has been confirmed for Twilio. Out of 20 times, TWLO closed lower 65.00% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the short side has been after 10 trading days, showing a win rate of 60.00% with an average market move of -4.87%.