Facebook, Inc. (NASDAQ:FB) Analysts are reducing their estimates
Facebook Inc. (FB) stock has already dropped by 27% from its 2018 highs. But now options trades and technical analysis suggest the stock falls an additional 6% and reaches a new 52-week low.
The shares of the social media company fell hard in March on user privacy concerns to a price of around $149. But the stock rebounded reaching a record high by July. However, shares plunged when the company noted during its second-quarter results that future earnings would fall short of expectations due to rising costs.
Analysts are reducing their estimates for the company and now expect third-quarter results to fall by over 5.5% versus the same period a year ago. The full-year forecasts are falling too, for example, since September analysts have reduced their earnings estimates for 2018 by $0.02 per share to $0.30. The bigger problem is that estimates are down even more since July.
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: 142.79.
The projected closing price is: 150.96.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 26 black candles for a net of 2 black candles.
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 22.4468. 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 30.50. 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 22 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 -159.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 1 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 3 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -6.520 at 151.380. Volume was 22% above average (neutral) and Bollinger Bands were 40% narrower than normal.
Open High Low Close Volume___
156.820 157.690 151.310 151.380 30,609,970
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 160.02 169.45 179.49
Volatility: 34 31 45
Volume: 27,206,460 25,200,358 27,508,536
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 15.7% 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 13 periods.
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