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.
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 Oscillator 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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