Facebook, Inc. (NASDAQ:FB) 2019 would be an investment year
Shares of Facebook popped Wednesday after a mixed third-quarter report and a candid earnings call with traditionally tight-lipped executives.
The stock gained as much as 6.9 percent in morning trading, before easing off slightly. The stock gained 3.8 percent by the end of trading to close at $151.79.
Wednesday’s jump adds to Tuesday’s nearly 3 percent bump and erases most of the stock’s losses from last week’s tech rout, when Facebook shed 5.6 percent.
Wednesday’s surge leaves Facebook 7 percent lower for October — a relative success compared with fellow FAANG stocks Amazon and Netflix, which both lost 20 percent this month amid overall market turmoil.
Facebook’s stock is still far from its 52-week high, though, trading 30 percent lower than its peak of $218.62 — reached in late July just before the stock cratered roughly 20 percent in a single day after reporting second-quarter earnings.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 159.12.
The projected lower bound is: 140.68.
The projected closing price is: 149.90.
A black body occurred (because prices closed lower 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 25 white candles and 25 black candles.
An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FACEBOOK INC A), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 70.6199. 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 44.30. 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 39 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 -9. This is not a topping or bottoming area. The last signal was a buy 2 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 1 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -1.400 at 150.350. Volume was 8% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
151.800 154.130 148.960 150.350 24,708,696
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 149.37 160.58 176.93
Volatility: 55 38 47
Volume: 30,798,910 25,653,776 28,091,180
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.
FACEBOOK INC A is currently 15.0% below its 200-period moving average and is in an downward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 30 periods.
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