Twilio Stock Price (NYSE: TWLO) fell 7% in a single day and sellers attempted to break the $60.00 support. TWLO Stock formed a bearish engulfing candle and dropped below the 50-day EMA.
Twilio stock faced rejection from the 200-day EMA showcase the positional trend remains down. However, the buyers are to defend the $60.00 support. If they succeed then the probability of trend reversal will increase.
Twilio Inc released the previous quarter’s earnings on May 9, 2023. It reported better-than-expected results due to which the stock price reacted positively.
TWLO stock took a U-turn from the $45.00 level and began to rise upward by forming higher highs. It rallied 57% approx in a short period of time. The momentum halted near $70.00 and prices entered into consolidation.
For the past two months, Twilio share price consolidated in the narrow range between $60.00 to $70.00. It formed a short-term base and buyers tried multiple times to expand the range upward. However, the attempt was not successful.
Twilio Stock Price closed the previous session at $62.26 with an intraday decline of -0.91%. The market capitalization stands at $11.45 Billion.
Will Twilio Stock test previous highs after Earnings?
Twilio Stock Price is in a short-term correction phase and buyers are struggling near $60.00. The previous breakout looks reliable and the probability of bounceback remains high.
Twilio Inc scheduled the next quarter earnings on August 8, 2023. Analysts estimated an EPS of $0.301 and revenue of $986.364 Million.
TWLO has a positive record of meeting the estimates so in this quarter also the company is likely to beat the estimates. Therefore, the stock price might react positively and retest the previous highs.
The technical analysis suggests the correction of TWLO Stock might take a halt in the range between $55.00 to $60.00.
TWLO Stock is mildly bearish
TWLO Stock is mildly bearish but till it sustains above $55.00 and the possibility of a bounce back is high. The broader market index Dow Jones and Nasdaq composite is bullish so the market sentiment remains positive.
The MACD curve generates a fresh negative crossover indicating mild bearishness. However, the curve is above the zero line which might act as a support. The RSI at 44 denotes weakness. However, if the price declines further then RSI might test the oversold territory.
Conclusion
Twilio Stock Price (NYSE: TWLO) witnessed profit booking ahead of quarterly earnings. However, TWLO stock still sustains above $55.00 which is likely to act as strong support.
The technical analysis suggests the possibility of a bounce back in Twilio shares from the $55.00 to $60.00 level remains high.
Technical levels
- Resistance levels: $70.00 and $80.00
- Support levels: $55.00 and $45.00
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
Source: https://www.thecoinrepublic.com/2023/07/23/twilio-stock-fell-7-will-twlo-stock-bounce-back-from-60-00/