Facebook, Inc. (NASDAQ:FB) Backing Gojek, Indonesia’s Largest Unicorn

Facebook, Inc. (NASDAQ:FB) Backing Gojek, Indonesia’s Largest Unicorn

Facebook, Inc. (NASDAQ:FB) Backing Gojek, Indonesia’s Largest Unicorn

Facebook is doubling down on Asia. Just weeks after making a $5.7bn investment in India’s Reliance Jio, the United States social media giant is backing Gojek, Indonesia’s largest unicorn.

Facebook did not disclose the size of the investment, that is focused on GoPay, the start-up’s payments arm, however people with knowledge of the matter said it had been in the low hundred million dollars and takes Gojek’s current fundraising round to over $3bn. PayPal, the United States payments giant, which is also seeking to grow in Asia, also invested.

Key implications: This can be a fintech play. India and Indonesia were among the four markets in which Facebook CEO Mark Zuckerberg said the company would launch a payments option for its WhatsApp messaging service. Facebook is seeking to monetise the rapidly growing number of shoppers and businesses moving online in the region as growth in its western markets slows.

Price Performance

Relative Valuation

Technical Indicators

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 205.61.

The projected upper bound is: 247.41.

The projected lower bound is: 216.19.

The projected closing price is: 231.80.

Candlesticks

A black body occurred (because prices closed lower 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 31 white candles and 19 black candles for a net of 12 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 70.9945. This is not an overbought or oversold reading. The last signal was a sell 5 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 66.00. 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 5 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 51. This is not a topping or bottoming area. The last signal was a sell 5 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 3 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -2.560 at 230.160. Volume was 37% below average (neutral) and Bollinger Bands were 3% narrower than normal.

Open      High      Low       Close       Volume
232.110   232.650   228.530   230.160     15,380,282
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period      50-period       200-period
Close:           230.29         194.26          194.10
Volatility:      42             56              50
Volume:          30,701,556     25,379,478      18,326,358

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 18.6% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future.

Our volume indicators reflect moderate flows of volume into FB.O (mildly bullish). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 37 periods.

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