TWLO 180 danger! Head and Shoulders, declining RSI, Vol, BBs
After a massive gap up, TWLO seems to be forming a bit of a head-and-shoulder type formation. My read: large confluence of factors implying 180 is a key level to hold. Failing to hold this 180 level would activate this trade.
Given the neck-to-head-peak of 210-180 = $30, this gives a projection for downside to $150 from the neckline value around 180. This is extra interesting looking because this marks the start of it's large gap up move last month. Failing to hold that gap would be doubly extra interesting again give a $30 gap fill, putting it back to $120.
This ~180 level is also near the bottom end of the bollinger bands on daily and monthly charts, where we see the bands compressing suggesting a move could be here in the next couple weeks. I see also a declining RSI reading on this move coupled with lower volume again suggesting some underlying weakness could be here soon.
Note: Fundamentally I like this name, it just feels it may be a little ahead of itself.
Given the neck-to-head-peak of 210-180 = $30, this gives a projection for downside to $150 from the neckline value around 180. This is extra interesting looking because this marks the start of it's large gap up move last month. Failing to hold that gap would be doubly extra interesting again give a $30 gap fill, putting it back to $120.
This ~180 level is also near the bottom end of the bollinger bands on daily and monthly charts, where we see the bands compressing suggesting a move could be here in the next couple weeks. I see also a declining RSI reading on this move coupled with lower volume again suggesting some underlying weakness could be here soon.
Note: Fundamentally I like this name, it just feels it may be a little ahead of itself.