TWTR closes above its opening price after recovering from early selling pressure
Twitter Inc. (TWTR) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, TWTR finished the month -3.81% lower at 29.79 after gaining $0.30 (1.02%) today, underperforming the S&P 500 (1.54%). Trading up to $0.61 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on June 2nd, TWTR gained 8.12% on the following trading day. 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 (TWTR as at Jun 30, 2020):
Tuesday's trading range has been $0.80 (2.7%), that's far below the last trading month's daily average range of $1.39. 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 TWTR.
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, one bullish candlestick pattern matches today's price action, the Takuri Line.
Prices are trading close to the key technical resistance level at 30.29 (R1).
Crossing above the lower Bollinger Band, prices have lost at least some of their downward momentum in the short-term and could now be heading back up towards the mean of the Bollinger Bands at 33.30.
Twitter shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Takuri Line" stand out. While it is usually interpreted as bullish, it has actually shown to be bearish for Twitter. Out of 29 times, TWTR closed lower 58.62% 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 five trading days, showing a win rate of 58.62% with an average market move of -1.21%.