Facebook, Inc. (NASDAQ:FB) already recovering from its scandals
There’s a market adage that stocks often make their biggest gains when the market is most fearful. Stocks, it is said, climb a wall of worry. On the flip side, when folks are most optimistic and the news seems great, stocks can fall down a slope of hope. Facebook (NASDAQ:FB) is clearly in the wall of worry phase right now.
As 2019 has gotten under way, the headlines for FB stock have gone from bad to worse. The company suffered a legal setback recently in Germany revolving around data usage. Japan is seeking to crack down on big tech companies. California’s governor is threatening to hit the big tech firms with a “data dividend” tax. That’s all in addition to the usual concerns about Facebook losing younger users and the company’s liability to future political hacking and other misuse of the firm’s data.
And, yet, despite all that, FB stock is clearly in a bullish pattern. The stock is trading back to its highest level since September, and is now more than 30% off the lows. If you were waiting for the news to turn positive, you missed the best buying opportunity for FB stock in several years. What’s changed? It starts with earnings.
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 155.23.
The projected upper bound is: 175.34.
The projected lower bound is: 150.69.
The projected closing price is: 163.02.
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 29 white candles and 21 black candles for a net of 8 white candles.
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 27.2684. This is not an overbought or oversold reading. The last signal was a buy 1 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 58.74. 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 sell 8 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 -114.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 8 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 sell 4 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 0.270 at 162.560. Volume was 53% below average (consolidating) and Bollinger Bands were 54% wider than normal.
Open High Low Close Volume___
162.250 163.720 161.250 162.560 11,770,692
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 165.04 147.96 166.72
Volatility: 15 55 49
Volume: 14,104,444 24,348,946 24,257,856
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 2.5% below 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 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 30 periods.