Beginners' Guide to Profit in Choppy Markets: TWLO Delivers 11%
Capitalizing on Choppy Markets: High-Tech Stocks TWLO's Performance on TA&FA
Harnessing the unpredictability of the stock market can be a formidable task, especially for beginners. The ever-changing nature of market dynamics can often leave novice traders overwhelmed. However, the rise of high-tech stocks like Twilio Inc. (TWLO) has been a beacon of hope for these newcomers. Embracing the power of Technical Analysis (TA) and Fundamental Analysis (FA), TWLO's recent performance has demonstrated a stellar 11% gain, offering a fascinating case study for rookie traders navigating choppy markets.
The Moving Average Convergence Divergence (MACD) for TWLO, an indicator used in technical analysis to identify potential buying and selling opportunities, turned positive on July 13, 2023. This switch to the positive realm is not just a momentary blip but rather carries significant potential, pointing towards the likelihood of a sustained upward trend for TWLO.
The power of MACD lies in its ability to highlight changes in the strength, direction, momentum, and duration of a stock’s price trend. The change in TWLO's MACD histogram - a graphical representation of the divergence and convergence of short and long-term moving averages - from negative to positive is indeed a powerful signal.
When we delve into the historical data, the trends become even more compelling. In past instances where TWLO's MACD turned positive, the stock continued to rise in 41 out of 49 cases over the subsequent month. This reveals an impressive 84% chance of a continued upward trend, shedding light on TWLO's robust growth potential.
So, what does this mean for beginners looking to make their mark in choppy markets? It’s a valuable lesson in recognizing and utilizing key technical indicators like MACD, to guide their trading strategies, particularly in the high-tech sector. The intriguing performance of TWLO underlines the possibilities that lie within tech stocks and how effective TA and FA can be to exploit them.
The story of TWLO is a testament to the potential that high-tech stocks hold in turbulent markets. As beginners continue to navigate the turbulent waters of trading, TWLO's journey provides a valuable roadmap on how to harness technical and fundamental analysis to unlock opportunities and drive investment success. The market may be choppy, but with careful analysis and understanding, it can indeed be navigated successfully.
TWLO in upward trend: price may jump up because it broke its lower Bollinger Band on September 21, 2023
TWLO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In of 37 cases where TWLO's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where TWLO's RSI Indicator exited the oversold zone, of 34 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 4 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
The 10-day moving average for TWLO crossed bullishly above the 50-day moving average on September 07, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 9 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TWLO advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 210 cases where TWLO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on September 15, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on TWLO as a result. In of 85 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for TWLO turned negative on September 18, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 49 similar instances when the indicator turned negative. In of the 49 cases the stock turned lower in the days that followed. This puts the odds of success at .
TWLO moved below its 50-day moving average on September 15, 2023 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where TWLO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating slightly worse than average price growth. TWLO’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.076) is normal, around the industry mean (17.317). P/E Ratio (0.000) is within average values for comparable stocks, (41.697). TWLO's Projected Growth (PEG Ratio) (28.154) is very high in comparison to the industry average of (3.542). Dividend Yield (0.000) settles around the average of (0.025) among similar stocks. P/S Ratio (2.702) is also within normal values, averaging (8.578).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. TWLO’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a provider of cloud-based communications platform
Industry InternetSoftwareServices
TWLO and
Correlation & Price change
A.I.dvisor indicates that over the last year, TWLO has been loosely correlated with YELP. These tickers have moved in lockstep 59% of the time. This A.I.-generated data suggests there is some statistical probability that if TWLO jumps, then YELP could also see price increases.
| Ticker / NAME | Correlation To TWLO | 1D Price Change % | ||
|---|---|---|---|---|
| TWLO | 100% | +1.82% | ||
| YELP - TWLO | 59% Loosely correlated | -0.74% | ||
| CARG - TWLO | 47% Loosely correlated | -0.11% | ||
| ZG - TWLO | 46% Loosely correlated | -1.49% | ||
| FVRR - TWLO | 45% Loosely correlated | +1.85% | ||
| Z - TWLO | 45% Loosely correlated | -1.76% | ||
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