TWTR dominated by bears dragging the market lower throughout the day
Twitter Inc. (TWTR) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, TWTR finished the month 22.19% higher at 36.40 after losing $0.32 (-0.87%) today, notably underperforming the S&P 500 (0.77%). The bears were in full control today, moving the market lower throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (TWTR as at Jul 31, 2020):
Friday's trading range has been $1.36 (3.64%), that's slightly below the last trading month's daily average range of $1.55. Weekly volatility is also lower, being way below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for TWTR.
In a volatile session, prices traded above the previous day's high as well as below the prior day's low, forming a bearish Outside Bar. Additionally, one bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 35.97 earlier during the day, the market bounced off the key technical support level at 36.09 (S1). The failure to close below the support might increase that levels significance as support going forward. When prices bounced off a significant support level the last time on July 17th, TWTR gained 3.49% on the following trading day.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Decisive Down Move" stand out. Although it is usually interpreted as bearish, it has actually shown to be bullish for Twitter. Out of 197 times, TWTR closed higher 58.88% 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 55.84% with an average market move of 1.36%.