twilio-trips-over-its-outlook:-can-it-regain-its-balance?

Twilio Trips Over Its Outlook: Can It Regain Its Balance?

Let’s check out the charts for its next move.

By

Aug 05, 2022 | 08:22 AM EDT

Stocks quotes in this article: TWLO

Shares of customer engagement platform Twilio Inc. (TWLO)  are tanking early Friday morning after reporting its second-quarter earnings and future outlook Thursday night. The stock was also cut to a “hold” recommendation with a $90 price target by a sell-side firm. Let’s check the charts and indicators and see what happening there.

In the daily bar chart of TWLO, below, we can see the shares have slumped sharply lower the past 12 months. Some basing action can be seen since June but this may not be enough to generate much of a rebound. Prices are trading above the 50-day moving average line but the slope of the line has not turned positive. The slower-to-react 200-day line has a negative slope and intersects around $180.

The daily On-Balance-Volume (OBV) line shows weakness into June and only a slight improvement since then. The Moving Average Convergence Divergence (MACD) oscillator shows higher lows from late January but it still remains below the zero line. 

In the weekly Japanese candlestick chart of TWLO, below, we fail to find a bottom reversal pattern. Prices are well below the declining 40-week moving average line.

The weekly OBV line has turned sideways in June and July after a long decline. The MACD oscillator has crossed to the upside for a cover shorts buy signal. 

In this daily Point and Figure chart of TWLO, below, we can see a potential upside price target in the $128 area. 

In this weekly Point and Figure chart of TWLO, below, we can see a possible upside price target in the $136 area. 

 

Bottom-line strategy: Twilio’s charts and indicators are mixed. While the Point and Figure charts suggest gains ahead the other clues are not in agreement. I would stand aside for now.

Get an email alert each time I write an article for Real Money. Click the “+Follow” next to my byline to this article.

Real Money’s message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site’s moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email sent

Thank you, your email to has been sent successfully.

Oops!

We’re sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

Please Join or Log In to Email Our Authors.

Email Real Money’s Wall Street Pros for further analysis and insight

Already a Subscriber? Login

 » Read More  » Read More

Tags: No tags

Comments are closed.