Facebook, Inc. (NASDAQ:FB) be prepared for some temporary setbacks

Facebook, Inc. (NASDAQ:FB) be prepared for some temporary setbacks

Facebook, Inc. (NASDAQ:FB) be prepared for some temporary setbacks

Facebook (NASDAQ: FB ) has had a rocky relationship with investors this year. If you’re someone who likes FB stock, be prepared for some temporary setbacks before making the most of that friendship. Let me explain.

From “fake news” scandals to security breaches of users’ personal information and slowing growth, 2018 has been a much more challenging time to own or buy FB stock. But don’t take my word for it, just take a look at Facebook’s volatile price chart.

During the good times, and there have been some of those this year, shares of Facebook managed to hit new highs. At its peak FB stock was even up nearly 25% from the low that preceded it. However, FB has also faced two major corrections and dropped as much as 42% from July’s all-time-high.

The other bad news is the bears are still in control of the stock. FB remains a troubling 35% from its high of $218.62 and is steeped in a downtrend on the weekly price chart. That same price action has also set shares back more than 20% in 2018. Still, there are signs the bears’ days could be numbered.

FB finally saw some bullish sentiment Monday following an upbeat analyst note from Deutsche Bank, and Facebook announcing a $9 billion buyback plan on top of last year’s $15 billion repurchase agreement.

Overall, the bias in prices is: Downwards

The projected upper bound is: 151.37.

The projected lower bound is: 131.90.

The projected closing price is: 141.63.

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 23 white candles and 27 black candles for a net of 4 black 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 67.2846. This is not an overbought or oversold reading. The last signal was a sell 4 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 50.38. 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 12 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 118.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 up 0.230 at 142.080. Volume was 20% below average (neutral) and Bollinger Bands were 40% narrower than normal.

Open High Low Close Volume___
143.880 143.880 141.100 142.080 20,300,348

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

Moving Averages: 10-period 50-period 200-period
Close: 139.10 147.21 171.67
Volatility: 30 42 46
Volume: 25,183,184 25,837,188 27,822,570

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 17.2% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on FB.O and have had this outlook for the last 55 periods.

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