Facebook, Inc. (NASDAQ:FB) announcing its quarterly earnings results on Tuesday after the market close

Facebook, Inc. (NASDAQ:FB) announcing its quarterly earnings results on Tuesday after the market close

Facebook, Inc. (NASDAQ:FB) announcing its quarterly earnings results on Tuesday after the market close

Facebook, Inc. (FB) shares are trading at $146.20, down -3%. The company is announcing its quarterly earnings results on Tuesday after the market close. What’s driving Facebook stock price? What’s FB stock price forecast?

Facebook is the world’s largest social media network. The stock fell 15% in the past year. It is trading at a P/E ratio of 20.09, a significant discount to its five-year average.

Investors are showing interest in the stock because of untapped advertising revenue, which grew 42% in the previous quarter. On the other hand, some bearish investors worry about lower margin guidance the company projected. Also, social media companies such as Facebook have been experiencing quite a lot of criticism and even skepticism in the mainstream public lately. Last quarter’s revenue rose 42% to $13.23 billion and earnings per share came at $1.74 compared to $1.32 for the same period last year. Daily active users increased by 11% year-on-year to 1.47 billion.

Third-quarter results will be released after market close on October 30, 2018. Analysts expect the company to earn $1.48 per share on revenue of $13.82 billion. The company beat analysts’ estimates three times in the previous four quarters.

Overall, the bias in prices is: Downwards.

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

The projected upper bound is: 153.36.

The projected lower bound is: 136.21.

The projected closing price is: 144.78.

Candlesticks

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 24 white candles and 26 black candles for a net of 2 black 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 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 19.1916. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 34.18. 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 34 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 -192.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 9 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 sell 2 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -5.580 at 145.370. Volume was 100% below average (consolidating) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
145.820 149.000 143.800 145.370 20,255

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

Moving Averages: 10-period 50-period 200-period
Close: 153.22 163.05 177.70
Volatility: 52 35 47
Volume: 17,803,226 23,200,546 27,932,480

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 18.2% 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 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 25 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

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