“While sell-offs aren’t ideal, they make it easier to identify where the capital is moving.”
It’s never a fun feeling waking up and seeing your portfolio down 2-3%, a scenario many traders faced yesterday as the market reacted to tariff news.
However, money rarely leaves the market; it merely flows from one stock to another. While sell-offs aren’t ideal, they make it easier to identify where the capital is moving.
Instead of trying to catch bottoms, which can be risky, I prefer to stick with strong stocks that are showing relative strength. This is why I’m focusing on Twilio (TWLO) right now.
Earnings Winner from Last Week
Twilio shares surged over 20% last week following a robust FY 2025 outlook presented at their investor day.
This surge was driven by strong AI product adoption and an accelerated top-line growth projection. Twilio is targeting GAAP operating income profitability and plans significant stock buybacks, aiming to return 50% of free cash flow to shareholders.
What is Twilio?
Twilio Inc. is a leading cloud communications platform that empowers businesses to integrate communication tools into their applications. From messaging and voice to video and AI-driven interactions, Twilio provides scalable solutions that enhance customer engagement and operational efficiency.
With the AI market projected to grow at 21% annually until FY 2034, Twilio is well-positioned to capitalize on this trend.
The Technical Picture
Here’s what makes Twilio’s current setup exciting:
Stacked EMAs – The Setup
Twilio’s chart displays beautifully stacked Exponential Moving Averages (EMAs) on both daily and weekly charts. This alignment typically precedes significant bullish moves.
The shorter-term EMAs are positioned above the longer-term ones, forming a bullish ladder that indicates strong upward momentum.
The Intraday Squeeze on 78-Minute and 1-Hour Timeframes
Twilio is currently exhibiting a compelling squeeze setup on both the 78-minute and 1-hour timeframes. Understanding these specific intraday squeezes is crucial, as they often signal imminent price movements that traders can capitalize on. Here’s a detailed breakdown of what these setups entail and why they are significant for Twilio’s technical outlook:
A squeeze setup is a technical pattern where a stock’s volatility contracts, typically indicated by the narrowing of Bollinger Bands relative to Keltner Channels.
This contraction suggests that the stock is in a phase of consolidation, with reduced price movement and volatility. Traders view squeezes as precursors to significant price breaks—either upward or downward—as the stock exits the consolidation phase.
Your Action Plan
Despite the crazy volatility we’ve experienced in the market, I will continue to focus on trading strong setups.
Which is why I like TWLO:
1. Multi-Timeframe Confirmation The occurrence of squeezes on both the 78-minute and 1-hour timeframes provides multi-timeframe confirmation of Twilio’s technical
2. Alignment with Stacked EMAs Coupled with the previously discussed stacked EMAs setup on the daily and weekly charts, the intraday squeezes reinforce a bullish outlook.
3. Earnings Momentum Twilio’s status as an earnings winner adds another layer of strength to the technical setup. Strong fundamentals often complement technical signals, increasing the likelihood of a successful breakout when the squeeze is resolved.
I traded TWLO last week and was able to snag +40% profits in 24 hours. And I’m looking to play it again this week…
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