Facebook, Inc. (NASDAQ:FB) an attractive opportunity

Facebook, Inc. (NASDAQ:FB) an attractive opportunity

Facebook, Inc. (NASDAQ:FB) an attractive opportunity

Facebook was the most popular stock position for hedge funds heading into July according to Goldman Sachs. It was a giant money-making Silicon Valley dream come true. No one could have predicted the company’s 2Q report where management outlined plans for increased spending and lowered margin guidance going forward.

Since the peak in July, shares are down 25% and the stock has lagged other tech companies by a wide margin over the past year. Facebook shares have tanked, wreaking havoc on current shareholders but for everyone else, this is an attractive opportunity to own one of the most promising tech stocks.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 182.59.

The projected lower bound is: 144.59.

The projected closing price is: 163.59.

Candlesticks

A black body occurred (because prices closed lower 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 58.3112. This is not an overbought or oversold reading. The last signal was a buy 8 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 43.38. 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 14 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 47. This is not a topping or bottoming area. The last signal was a sell 0 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 7 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -4.380 at 164.460. Volume was 41% above average (neutral) and Bollinger Bands were 45% narrower than normal.

Open High Low Close Volume___
168.330 168.790 162.560 164.460 34,265,640

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

Moving Averages: 10-period 50-period 200-period
Close: 164.35 175.07 180.30
Volatility: 29 63 45
Volume: 26,166,066 30,220,702 27,060,008

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 8.8% below its 200-period moving average and is in an downward trend. Volatility is Our volume indicators reflect moderate flows of volume out of FB.O (mildly bearish). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 5 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH