Pascal
01-10-2017, 05:43 AM
After its IPO, TWLO jumped high and then crashed back down to its IPO level.
What should we do here?
The main characteristic about TWLO is that its short ratio is about 100% and that the float turns over in a few days. This indicates that TWLO is a very short-term trading stock. It also shows that the stock is under "immense" selling pressure but prone to a shorts-covering move.
39073
We can see below that there is some accumulation, but this is not very strong.
39074
The most interesting is the supply pattern below. We can see that TWLO could fall back into a stable <10% supply level under two conditions:
Move A: The price would swiftly move up to $29.5
Move B: The price would stabilize here but the "churn" would quickly shift the low supply level back to the left side ($29)
39075
In any case, the price would have to regain $30 and stay there before being attractive again.
What should we do here?
The main characteristic about TWLO is that its short ratio is about 100% and that the float turns over in a few days. This indicates that TWLO is a very short-term trading stock. It also shows that the stock is under "immense" selling pressure but prone to a shorts-covering move.
39073
We can see below that there is some accumulation, but this is not very strong.
39074
The most interesting is the supply pattern below. We can see that TWLO could fall back into a stable <10% supply level under two conditions:
Move A: The price would swiftly move up to $29.5
Move B: The price would stabilize here but the "churn" would quickly shift the low supply level back to the left side ($29)
39075
In any case, the price would have to regain $30 and stay there before being attractive again.