Twilio rambles on his horizons: Can he regain his balance?

Shares of customer engagement platform Twilio Inc (TWLO) are dropping early Friday morning after reporting second-quarter earnings and future expectations Thursday night. The stock was also lowered to a “hold” recommendation with a $90 price target by a selling company. Let’s check out the charts and indicators and see what happens there.

In the TWLO daily bar chart below, we can see stocks have fallen sharply over the past 12 months. Some fundamental action can be seen since June but that may not be enough to generate much of a bounce. Prices are trading above the 50-day moving average line but the slope of the line has not turned positive. The 200-day line, which is slower to react, has a negative slope and crosses around $180.

The OBV line shows weakness in June and only a slight improvement since then. The Moving Average Convergence Divergence (MACD) oscillator is showing higher lows from late January but still below the zero line.

In the TWLO weekly candlestick chart below, we failed to find a bottoming reversal pattern. Prices are well below the lower 40-week moving average line.

The weekly OBV line turned sideways in June and July after a long decline. The MACD fluctuation has crossed to the upside for a short covering buy signal.

In the dot chart and TWLO daily chart below, we can see a possible bullish price target in the $128 area.

In this weekly pips and figure chart for TWLO, below, we can see a potential bullish price target in the $136 region.

Bottom Line Strategy: The charts and indicators for Twilio are mixed. While point and figure graphs point to upcoming gains, other clues are not in agreement. I’d like to stand aside now.