Is #Twilio Catching the Eyes of Suitors? | $TWLO

Although Twilio Inc (NYSE: TWLO) has a market cap of $16.45 billion, it is often touted as a possible takeover target for the tech giants whom many of which are already customers of the company. Analysts are also sweet on the stock; with only 5 out of the 25 analysts covering TWLO not having a buy rating, resulting in a lofty average: $138 price target.

“The biggest growth catalyst in our view, on a longer-term basis, is the conversations application programming interface, which could dramatically increase messaging volumes across TWLO‘s customer base as today’s notifications become tomorrow’s conversations,” Zukin wrote.

For a Technical Outlook, Let’s have a Look at the Charts for Some Guidance as to Where the Stock may Go Next.

The Daily Chart gives us a Glimpse into the Future for $TWLO, and Notable Features include:

Having broke through the $117 region, the company has consolidated and back tested that daily horizontal support level, which has held.
Above the 0.5 Fibonacci level, there is heavy resistance from $127 – $132; which when cleared should present a possible run to the previous highs.
The POC (red line) at $130 is the pivotal level to cross.
2020 has seen a major spike in volume, which is bullish as earnings approach. A sell-off pre-earnings would be a negative.

Looking at the Longer-term Indicators will give us a Better Perspective of the TWLO’s Behavior.

RSI has crossed above the midpoint of the range.
Histogram has moved above zero line and has ticked green signalling the trend change.
MACD has crossed bullishly and is in upward trajectory, generally this is often regarded as a short covering signal.
OBV (on balance volume) has moved within a very well-respected channel and is now in a bullish upward trajectory.
Stochastic has plenty of room to the upside before needed to reset.

Targets to Consider:

Short term – $127 – Heavy resistance level.

Medium term – $137 – 0.786 Fibonacci resistance.

Longer term – $152 – Challenge all-time highs.

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