TWTR closes below its opening price unable to hold early session gains
Twitter Inc. (TWTR) Technical Analysis Report for Dec 07, 2018 | by Techniquant Editorial Team
TWTR ended the week 4.39% higher at 32.83 after losing $0.13 (-0.39%) today on high volume, but still significantly outperforming the S&P 500 (-2.33%) following today's NFP report. Trading $1.53 higher after the open, Twitter was unable to hold its gains as the bears took control ending the day below its opening price. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TWTR as at Dec 07, 2018):
Friday's trading range has been $1.70 (5.18%), that's above the last trading month's daily average range of $1.44. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TWTR.
Four candlestick patterns are matching today's price action, the Gravestone Doji, the Northern Doji and the Shooting Star which are known as bearish patterns and one neutral pattern, the Doji. The last time a Shooting Star showed up on October 18th, TWTR lost -1.57% on the following trading day.
After spiking up to 34.37 during the day, the share found resistance at the 200-day moving average at 34.01.
Though still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the nine market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Northern Doji" stand out. Its common bearish interpretation has been confirmed for Twitter. Out of 31 times, TWTR closed lower 67.74% 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 two trading days, showing a win rate of 61.29% with an average market move of -1.20%.