TWLO Twilio stock gained more than 15% yesterday on the back of a report of expanded partnership with Amazon. Short squeeze ahead?
Today’s close is very important. There are no sellers anymore. And the bears don't have balls to sell short under $29. We need good news and huge volume for rebounce in the next weeks and months. Institutional investors will come and start buying.
There are not many stocks close to their 52 week lows. If you scan hundreds of charts, there is almost nothing left. The stock market is near all-time highs as even hated stocks like Chopotle Mexican Grill ($CMG) and Valeant Pharma (VRX) have jumped in recent days. One of the only plays left to squeeze higher is Twilio Inc (NYSE:TWLO). This is a very attractive accumulation play because it is a growth stock in an exciting sector. Down from highs near $71, it offers one of the only 'cheap' plays left in the stock market. In addition, there are 10 million shares short with a float of just 30 million. This means that any surge higher will trigger a massive short squeeze. The stock chart trigger for this massive short squeeze is any daily close above $28.50. This can clearly be seen in the stock chart below as $28.50 was major support, now resistance. Even yesterday, the stock opened above $28.50 but failed to hold above. The bottom line is, if Twilio closes above $28.50, it is will go to $40. Safe investors will wait for it to close above this level to buy.
Upgrades, reiterations etc all useless against the horrible rout this stock has been through. The only thing that can save it is a+ER.
Am looking for acceleration of overall customer count growth plus good news on the enterprise account space.
Earnings surge test at $35 resistance. That will be the level to watch. If it gets over it, tons of upside, if not, expect fade.
