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Published: 6 months ago
Author: BullishCharts

Is #Twilio Catching the Eyes of Suitors? | $TWLO

Although Twilio Inc (NYSE: TWLO) has a market cap of $16.45 billion, it is often touted as a possible takeover target for the tech giants whom many of which are already customers of the company.  Analysts are also sweet on the stock; with only 5 out of the 25 analysts covering TWLO not having a buy rating, resulting in a lofty average: $138 price target.

“The biggest growth catalyst in our view, on a longer-term basis, is the conversations application programming interface, which could dramatically increase messaging volumes across TWLO‘s customer base as today’s notifications become tomorrow’s conversations,” Zukin wrote.

For a Technical Outlook, Let’s have a Look at the Charts for Some Guidance as to Where the Stock may Go Next.

Twlo Chart 1

The Daily Chart gives us a Glimpse into the Future for $TWLO, and Notable Features include:

  • Having broke through the $117 region, the company has consolidated and back tested that daily horizontal support level, which has held.
  • Above the 0.5 Fibonacci level, there is heavy resistance from $127 – $132; which when cleared should present a possible run to the previous highs.
  • The POC (red line) at $130 is the pivotal level to cross.
  • 2020 has seen a major spike in volume, which is bullish as earnings approach. A sell-off pre-earnings would be a negative.

Twlo Chart 2

Looking at the Longer-term Indicators will give us a Better Perspective of the TWLO’s Behavior.

  • RSI has crossed above the midpoint of the range.
  • Histogram has moved above zero line and has ticked green signalling the trend change.
  • MACD has crossed bullishly and is in upward trajectory, generally this is often regarded as a short covering signal.
  • OBV (on balance volume) has moved within a very well-respected channel and is now in a bullish upward trajectory.
  • Stochastic has plenty of room to the upside before needed to reset.

Targets to Consider:

Short term –         $127 – Heavy resistance level.

Medium term –   $137 – 0.786 Fibonacci resistance.

Longer term –      $152 – Challenge all-time highs.

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