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Brief Analysis of Twitter’s Technical Indicators

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Technical indicators

In making investment decisions, investors and traders analyze technical indicators. The RSI (relative strength index) and moving averages are among the most widely used technical indicators.

Generally, an RSI score below 30 signifies that a stock has been oversold, while an RSI score above 70 indicates that a stock has been overbought.

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100-day moving averages

On May 5, 2017, Twitter (TWTR) was trading ~16.8% above its 100-day moving average. Among its peers, Facebook (FB) traded ~12.1% above its 100-day moving average, eBay (EBAY) traded ~4.7% above its 100-day moving average, PayPal (PYPL) traded ~17.4% above its 100-day moving average, and Square (SQ) traded ~23.6% above its 100-day moving average.

Relative strength index

Twitter has a 14-day RSI reading of 94. This is in comparison to Facebook, eBay, PayPal, and Square, which have 14-day RSIs of 79, 40, 92, and 77, respectively.

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Moving average convergence divergence

The moving average convergence divergence (or MACD) refers to the difference between the long-term and short-term moving averages. Twitter recorded an MACD of 0.46 in the last 14 days.

Out of the 37 analysts following Twitter, four recommended a “buy,” 19 recommended a “hold,” and 14 recommended a “sell.”

Median target estimate

A price target refers to the average price of a stock as projected by an adviser or investment analyst. If achieved, the price target represents the highest level of returns from the investment. Analysts set Twitter’s price target for this quarter at $14.62 compared with a price target of $15.00 set in the previous quarter.

Market capitalization

On May 5, 2017, Twitter (TWTR) had a market cap of ~$13.8 billion.

Market capitalization, or market cap, represents the market value of a company at a particular time. Market cap is calculated as shares outstanding of a publicly traded company, multiplied by share price.

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