Profitable Swing Trading: TWLO's Market Neutral Strategy - 14.65% Returns
In the competitive and fast-paced financial world, effectively leveraging a market-neutral strategy can provide substantial gains, as evidenced by the 14.65% return on TWLO. This strategy uses both technical analysis (TA) and fundamental analysis (FA) to make informed decisions, irrespective of market direction.
In the latest instance, the moving average convergence divergence (MACD) indicator for TWLO turned positive on July 13, 2023, suggesting the possibility of a bullish market scenario. The MACD is a trend-following momentum indicator that demonstrates the relationship between two moving averages of a security's price.
When the MACD crosses above the signal line, it gives a bullish signal, indicating that it may be an optimal time to buy. Conversely, when it falls below, it provides a bearish signal. The fact that TWLO's MACD just turned positive implies the potential for an upward trend.
Historically speaking, this shift has signaled a continuation of a rising trend in 43 out of 49 cases over the following month for TWLO, which equates to an impressive success rate of 88%. This strong track record offers a compelling argument for the reliability of using the MACD as part of a market-neutral strategy.
The market-neutral strategy involves taking a balanced approach of going long on stocks that are expected to increase in value and short on those predicted to decrease. This approach aims to profit from both increasing and decreasing prices in one or more markets, with the goal of avoiding significant market risk.
In the case of TWLO, applying this strategy following a positive MACD signal, while also considering other factors of fundamental analysis, has proven to be highly effective. The resulting 14.65% return is a testament to the strategy's successful implementation.
Leveraging both technical and fundamental analysis as part of a market-neutral strategy can lead to substantial returns. This approach, which is seemingly resilient to market direction, continues to gain popularity among swing traders and choppy market traders. Especially in cases like TWLO, where a positive MACD signal points to a promising trend continuation, this strategy proves its worth in the ever-evolving investment landscape.
Aroon Indicator for TWLO shows an upward move is likely
TWLO's Aroon Indicator triggered a bullish signal on May 07, 2025. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 210 similar instances where the Aroon Indicator showed a similar pattern. In of the 210 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on April 22, 2025. You may want to consider a long position or call options on TWLO as a result. In of 88 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for TWLO just turned positive on April 15, 2025. Looking at past instances where TWLO's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .
TWLO moved above its 50-day moving average on May 02, 2025 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where TWLO advanced for three days, in of 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The 10-day RSI Indicator for TWLO moved out of overbought territory on May 06, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 35 similar instances where the indicator moved out of overbought territory. In of the 35 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
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 .
TWLO broke above its upper Bollinger Band on April 24, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. TWLO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued 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 (1.168) is normal, around the industry mean (11.896). P/E Ratio (0.000) is within average values for comparable stocks, (50.251). TWLO's Projected Growth (PEG Ratio) (28.154) is very high in comparison to the industry average of (3.572). Dividend Yield (0.000) settles around the average of (0.027) among similar stocks. P/S Ratio (2.756) is also within normal values, averaging (19.917).
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 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 88, placing this stock worse than average.
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.
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a provider of cloud-based communications platform
Industry InternetSoftwareServices