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

The shares of customer engagement platform Twilio Inc. (TWLO) fell early Friday morning after announcing its second quarter results and outlook on Thursday evening. The stock was also downgraded to a “hold” recommendation with a price target of $90 by a sell-side company. Let’s take a look at the charts and indicators and see what’s happening there.

In TWLO’s daily bar chart below, we can see that stocks have fallen sharply over the past 12 months. Some basic action has been seen since June, but this may not be enough to generate much of a rebound. Prices are trading above the line of the 50-day moving average, but the slope of the line has not turned positive. The slower reacting 200 day line has a negative slope and crosses about $180.

The daily On-Balance-Volume (OBV) line shows weakness in June and has only slightly improved since then. The Moving Average Convergence Divergence (MACD) oscillator is showing higher lows from late January, but still remains below the zero line.

In TWLO’s weekly Japanese candlestick chart below, we find no bottom reversal pattern. Prices are well below the falling line of the 40-week moving average.

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 buy signal for cover shorts.

In this TWLO daily point and figure chart below, we can see a potential upward price target in the $128 area.

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

Bottom line strategy: Twilio’s charts and indicators are mixed. While the dot and figure charts point to gains, the other clues disagree. I would stand aside for now.

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