Home US Stocks Facebook Australia Sues Facebook, Inc. (NASDAQ:FB), Alleges Breach of User Data

Australia Sues Facebook, Inc. (NASDAQ:FB), Alleges Breach of User Data

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Australia Sues Facebook, Inc. (NASDAQ:FB), Alleges Breach of User Data

The Australian privacy regulator filed a lawsuit against Facebook Inc accusing the social media giant of sharing the personal details of more than 300,000 people with political consultant Cambridge Analytica without their knowledge.

In the Federal Court lawsuit, the Australian Information Commissioner accused Facebook of breaching privacy law by disclosing 311,127 users’ information for political profiling via a survey product, ‘This Is Your Digital Life’, on its website.

The suit sought unspecified damages, adding that each breach of privacy law could draw a maximum penalty of A$1.7 million ($1.1 million). The fine would amount to A$529 billion if the court awarded the maximum for each of the 311,127 instances.

A representative for Facebook in Australia was not immediately available for comment.

Last July, Facebook was fined a record $5 billion by the U.S. Federal Trade Commission after a probe triggered by the same user personality quiz from 2014 to 2015.

All up, Facebook was accused of inappropriately sharing information belonging to 87 million users globally with the survey tool of now-defunct British firm Cambridge Analytica. The consultancy’s clients included U.S. President Donald Trump’s 2016 election campaign.

In the months after Trump’s election, Cambridge Analytica registered a business in Australia but never went to work for an Australian political party. In the Australian lawsuit, the Information Commissioner said Facebook did not know the exact nature of the data it shared with Cambridge Analytica’s ‘This Is Your Digital Life’ program, but that it failed to take reasonable steps to protect users’ personal information.

“As a result, the Affected Australian Individuals’ personal information was exposed to the risk of disclosure, monetization and use for political profiling purposes,” the court filing said.

“These breaches amounted to serious and/or repeated interferences with the privacy of the Australian Affected Individuals,” it added.

Technical Indicators

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 202.07.

The projected upper bound is: 193.42.

The projected lower bound is: 167.76.

The projected closing price is: 180.59.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 4 falling windows in the last 50 candles–this makes the current falling window even more bearish.

Momentum Indicators

Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 34.9672. This is not an overbought or oversold reading. The last signal was a buy 4 period(s) ago.

Relative Strength Index (RSI)

The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 31.81. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 5 period(s) ago.

Commodity Channel Index (CCI)

The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is -122.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 2 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 9 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -4.080 at 181.090. Volume was 56% above average (neutral) and Bollinger Bands were 141% wider than normal.

Open     High      Low     Close     Volume___
178.330 183.780 176.260 181.090 24,559,550
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period     50-period     200-period
Close: 191.73 209.26 194.47
Volatility: 54 40 33
Volume: 23,522,338 16,616,458 15,374,966

Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.

Summary

FACEBOOK INC A gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FACEBOOK INC A is currently 6.9% below its 200-period moving average and is in an downward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 23 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.