Twilio Trips Over Its Outlook: Can It Regain Its Balance?

Shares of customer engagement platform Twilio Inc. (TWLO) are tanking early Friday morning after reporting its second-quarter earnings and future outlook Thursday night. The stock was also cut to a “hold” recommendation with a $90 price target by a sell-side firm. Let’s check the charts and indicators and see what happening there.

In the daily bar chart of TWLO, below, we can see the shares have slumped sharply lower the past 12 months. Some basing action can be seen since June but this may not be enough to generate much of a rebound. Prices are trading above the 50-day moving average line but the slope of the line has not turned positive. The slower-to-react 200-day line has a negative slope and intersects around $180.

The daily On-Balance-Volume (OBV) line shows weakness into June and only a slight improvement since then. The Moving Average Convergence Divergence (MACD) oscillator shows higher lows from late January but it still remains below the zero line.

In the weekly Japanese candlestick chart of TWLO, below, we fail to find a bottom reversal pattern. Prices are well below the declining 40-week moving average line.
The weekly OBV line has turned sideways in June and July after a long decline. The MACD oscillator has crossed to the upside for a cover shorts buy signal.
In this daily Point and Figure chart of TWLO, below, we can see a potential upside price target in the $128 area.
In this weekly Point and Figure chart of TWLO, below, we can see a possible upside price target in the $136 area.
Bottom-line strategy: Twilio’s charts and indicators are mixed. While the Point and Figure charts suggest gains ahead the other clues are not in agreement. I would stand aside for now.
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