Is Twilio Inc (TWLO) Stock Headed For A Massive Short Squeeze?

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Technicals Indicate Resistance Ahead

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Yesterday’s stock rally has powered Twilio Inc (NYSE:TWLO) stock through the 20-day moving average resistance line. But the stock is now facing resistance from 50-day SMA. However, with strong momentum and bullish sentiment on its side, the stock may not find it difficult to break past the 50-day SMA. The RSI is still below the overbought zone. (Also Read: Twilio Inc A Tempting But Risky Bet For Now)

Is Twilio Stock Still A Buy?

Twilio has had a rocky year. The stock price doubled in just two days after the listing and continued on the upward trajectory, almost tripling in two months. However, the stock is down almost 50% from its peak, even after its massive rally. Drexel Hamilton’s price target indicates that stock still has 30% upside while the analysts’ consensus price target of $39 indicates that the stock has 12% upside left. Twilio stock is having strong upside momentum and will be helped by short covering. However, investors must remember that Twilio is a high growth, loss-making company which comes with very high risk. The weekly call option implied volatility has jumped indicating that there are heavy price swings ahead. Investors must brace in for rough time ahead.

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The article Is Twilio Inc (TWLO) Stock Headed For A Massive Short Squeeze? originally appeared on amigobulls.com. Watch our analysis video on TWLO.

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Additional Links

(1) http://shortsqueeze.com/?symbol=twlo&submit=Short+Quote%E2%84%A2

(2) http://www.schaeffersresearch.com/content/options/2016/12/20/option-bulls-target-twilio-inc-twlo-as-lockup-period-expires

(3) http://www.benzinga.com/news/16/12/8831350/twilio-amazon-partnership-expands-with-new-voice-messaging-service

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