Facebook, Inc. (NASDAQ:FB) 11% below its all-time high set in July 2018

Facebook, Inc. (NASDAQ:FB) 11% below its all-time high set in July 2018

Facebook, Inc. (NASDAQ:FB) 11% below its all-time high set in July 2018

After gapping up on Q1 earnings in late April, Facebook is 1.6% below a 198.58 buy point from a newly minted handle. The social media giant is now about 11% below its all-time high set in July 2018. The base has a depth of 44%, which is a warning sign. IBD’s research shows that bases with a depth of 40% or more have a higher chance of failing.

Facebook’s relative strength line is at a short-term high before the breakout, which is a bullish sign. But the line is still below all-time highs.

Facebook earnings have crushed estimates in the last three quarters, but are still slowing. Analysts expect EPS to fall in 2019 but rebound strongly in 2020.

Overall, the bias in prices is: Upwards.

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

By the way, prices are vulnerable to a correction towards 176.98.

The projected upper bound is: 204.11.

The projected lower bound is: 188.25.

The projected closing price is: 196.18.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 25 black candles for a net of 1 black 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 51.7174. This is not an overbought or oversold reading. The last signal was a sell 6 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 74.79. 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 7 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 82. This is not a topping or bottoming area. The last signal was a sell 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 buy 22 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 2.940 at 195.470. Volume was 26% below average (neutral) and Bollinger Bands were 22% wider than normal.

Open High Low Close Volume___
194.380 196.160 193.710 195.470 14,575,434

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

Moving Averages: 10-period 50-period 200-period
Close: 190.18 174.06 161.85
Volatility: 36 29 49
Volume: 23,377,588 17,726,596 24,405,234

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 20.8% above its 200-period moving average and is in an upward trend. Volatility is Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 22 periods. Our momentum oscillator is currently indicating that FB.O is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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