TWTR closes higher for the 7th day in a row
Twitter Inc. (TWTR) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, TWTR finished the week 12.48% higher at 32.62 after gaining $0.28 (0.87%) today, outperforming the S&P 500 (0.24%) ahead of tomorrow's Memorial Day market holiday. Today's close at 32.62 marks the highest recorded closing price since March 10th. Trading up to $0.60 lower after the open, the share managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 32.61, the stock confirmed its breakout through the previous session high after trading up to $0.16 above it intraday.
Daily Candlestick Chart (TWTR as at May 22, 2020):
Friday's trading range has been $0.99 (3.06%), that's below the last trading month's daily average range of $1.29. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TWTR.
Prices are trading close to the key technical resistance level at 33.19 (R1). After having been unable to move above 32.61 in the prior session, the market ran into sellers again around the same price level today, missing to move higher than 32.77. The last time this happened on Tuesday, TWTR actually gained 7.86% on the following trading day.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 29.52.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Close near high of period" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Twitter. Out of 323 times, TWTR closed lower 53.87% of the time on the next trading day after the market condition occurred.