Facebook Inc. Bar Set Low

Facebook Inc. Bar Set Low

Facebook is set to unveil earnings on Wednesday, July 26th, top pick for S&P Global portfolio manager Erin Gibbs. The company has a strong history of surpassing analysts’ earnings estimates. Valuation has come down to reasonable levels, at 32 x (times) forward earnings, given the lowered growth estimate for the next 12 months. The estimate for earnings per share over the next 12 months is only 3% growth, which sets the bar fairly low.

Facebook is getting ready to let media outlets charge readers for access to their stories.

The social network has started briefing publishers on the forthcoming subscription service and hopes to start testing it by October, according to a person familiar with the matter.

Technical Analysis

expecting earnings of 0.

The stock has been consolidating and tightening up really since the last quarterly earnings release.

Overall, the bias in prices is: Upwards.

Short term: Prices are moving.

Intermediate term: Prices are trending.

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

By the way, prices are vulnerable to a correction towards 151.96.

The projected upper bound is: 170.27.

The projected lower bound is: 159.31.

The projected closing price is: 164.79.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

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 86.3300. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 16 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 72.65. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 49 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 134.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 buy 6 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 1.660 at 164.520. Volume was 24% above average (neutral) and Bollinger Bands were 106% wider than normal.

Open       High         Low         Close       Volume
163.590   165.700   163.170   164.520   21,015,656

Technical Outlook
Short Term:               Overbought
Intermediate Term: Bullish
Long Term:                Bullish

Moving Averages: 10-period     50-period      200-period
Close:                       157.43           152.29            136.31
Volatility:                19                    23                   22
Volume:                   16,625,137    17,335,950   18,854,376

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 is currently 20.7% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. Our volume indicators reflect moderate flows of volume into FB.O (mildly bullish). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 6 periods. Our momentum oscillator is currently indicating that FB.O is currently in an overbought condition.

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Ivy Heffernan

Ivy Heffernan, student of Economics at Buckingham University. Junior Analyst at HeffX and experienced marketing director.

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