$TWLO Broadening tops rejection, massive 30% loss incoming? 4HR
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TWLO had a breakout from broadening tops. With the positive market momentum the stock has been able to pick up some upside but possibly looking to trap bulls
-Rising wedge formation in the short term
-Bigger picture head and shoulders forming.
-Very competitive sector not to mention how its market cap has been increasing but earnings have been disappointing in the past quarters
-Weekly bear flag forming with negative divergence
-MACD close to start negative divergence on the 4hr
-Looking at the following levels for the downtrend:
- $373 first minor support to break
- $362, from here I'd start expecting some bounces but slow downtrend towards $358
- $350 key level before entering the massive gap, once this gets lost then some serious downside can aim towards an extended move to $325
- $300 lows. This is a major key area to break so It'd expect choppiness and bounces. Once this get lost the measured move for a 30% can lead this stock to $275
-Not every single level will get easily broken and they just wont jump from one to another. Remember each red day is opportunity to buy so don't be amazed if you see it going up/consolidating after it reaches those levels
-Treat one level at a time and always keep up with news as news can throw away any technical analysis
TWLO had a breakout from broadening tops. With the positive market momentum the stock has been able to pick up some upside but possibly looking to trap bulls-Rising wedge formation in the short term
-Bigger picture head and shoulders forming.
-Very competitive sector not to mention how its market cap has been increasing but earnings have been disappointing in the past quarters
-Weekly bear flag forming with negative divergence
-MACD close to start negative divergence on the 4hr
-Looking at the following levels for the downtrend:
- $373 first minor support to break
- $362, from here I'd start expecting some bounces but slow downtrend towards $358
- $350 key level before entering the massive gap, once this gets lost then some serious downside can aim towards an extended move to $325
- $300 lows. This is a major key area to break so It'd expect choppiness and bounces. Once this get lost the measured move for a 30% can lead this stock to $275
-Not every single level will get easily broken and they just wont jump from one to another. Remember each red day is opportunity to buy so don't be amazed if you see it going up/consolidating after it reaches those levels
-Treat one level at a time and always keep up with news as news can throw away any technical analysis
Note
First PT reached. Now time to let it bounce and consolidate before aiming lower Note
second PT hit, cracked $350 but bounced before entering gap, getting closer Note
Update: Obviously I wasn't expecting this to just shoot straight down as it bounced on where the gap was previously but now the key is to watch the previous level it broke to act as resistance and in the hourly time frame with the resistance near $362 this seems to be forming a rising wedge getting ready to break out soon. Once below $350 serious damage can happen but it's key to break below $343 to enter the gap and see some serious blood Note
Comment: if it remains and holds above $362 then it's using it as support so at that point this would start being considered a reversal. Positive market reaction could take upon TWLO as well, always keep up with news as wellNote
Update: TWLO reached next target at $326, now consolidation and bounce. It could continue to head lower but the overall move played out well. Congrats if you played this along the way Note
$300 lows was reached. Nearly 2 weeks after and the entire move was almost caught. I don't personally think this is going to drop more due to positive market reaction but only movement left is for the completion of the measured move towards $275 
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