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.