Facebook, Inc. (NASDAQ:FB) at risk for a 20% slide according to well known analyst
Share prices did recover well into July – only to plummet yet again after an awful earnings release, this time by over 20 percent, good for a loss of $120 billion in market capitalization. That earnings statement, second quarter of 2018, saw management revising guidance down on the back of limited growth and that spectre still haunts the firm to this day.
Since then its been a downward trend for FB (NASDAQ:FB 138.05 0.07%), prices are currently down over 38 percent.
Today a well known Facebook-bear, analyst Brian Wieser of Pivotal Research Group, affirmed a very strong “sell” rating at the stock with a price target of $113 (down from his previous PT of $125). This is down almost 20 percent from today’s closing price of $138 a share.
While Wieser isn’t exactly known for his optimism in regards to Zuck & Co., he does go on to provide his reasoning for the downgrade.
According to the analyst, “The list of problems the company is grappling with is vast, including complicity in genocide, enabling social and political instability in different countries around the world, the unwitting sharing of consumer data and antagonized legislators in the US, the UK, Europe and beyond.”
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 147.38.
The projected upper bound is: 149.68.
The projected lower bound is: 125.77.
The projected closing price is: 137.72.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 25 white candles and 25 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 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 76.8642. This is not an overbought or oversold reading. The last signal was a buy 7 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 51.26. 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 29 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 65. This is not a topping or bottoming area. The last signal was a buy 7 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 2 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 0.100 at 138.050. Volume was 24% below average (neutral) and Bollinger Bands were 22% wider than normal.
Open High Low Close Volume___
137.560 138.870 135.910 138.050 20,089,336
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 132.54 140.13 167.95
Volatility: 74 55 49
Volume: 29,710,176 28,000,244 27,465,888
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 17.8% 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 0 periods.