TWTR closes within previous day's range
Twitter Inc. (TWTR) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
TWTR finished the week -0.32% lower at 36.91 after losing $0.25 (-0.67%) today, underperforming the S&P 500 (0.18%) ahead of tomorrow's Presidents' Day market holiday. Trading $0.35 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 prior day's range, prices failed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (TWTR as at Feb 14, 2020):
Friday's trading range has been $0.77 (2.08%), that's slightly below the last trading month's daily average range of $0.97. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for TWTR. Prices continued to consolidate within a tight trading range between 35.53 and 37.35 where it has been caught now for the whole last trading week.
After moving higher in the prior session, the market closed lower but above the previous day's open today, forming a bearish Harami Candle. Additionally, one bearish candlestick pattern matches today's price action, the Bearish Spinning Top.
After having been unable to move above 37.32 in the prior session, the share ran into sellers again around the same price level today, failing to move higher than 37.35. The last time this happened on February 5th, TWTR actually gained 15.03% on the following trading day.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Among the four 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. Though it is usually interpreted as bearish, it has actually shown to be bullish for Twitter. Out of 339 times, TWTR closed higher 53.10% 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 54.28% with an average market move of 1.16%.