Facebook, Inc. (NASDAQ:FB) Bullish Momentum To Continue
Shares of Facebook Inc. (FB) (Facebook Inc 209.99 +1.33%) are up nearly tenfold over the past five years, easily outpacing the S&P 500 return of just 66 percent.
Facebook, Inc. has a consensus outperform rating from 45 Wall Street analysts, and the number of shares currently sold short amount to at least 1.21% of shares outstanding.
The stock spiked 5.29% last month and is up 17.44 this year. Wall Street is only getting more bullish on the stock, with 42 of analysts who cover FB having a buy-equivalent rating. Analysts have placed a $227.39 price target on Facebook, Inc., suggesting a 9.73% gain from recent close. It’s currently trading about -0.58% below its 52-week high.
Traders’ bullish outlook may stem from what is expected to be a strong second-quarter earnings report. Analysts are looking for the company to say that earnings grew by 29 percent and revenue 44 percent. Analysts have upped their earnings estimates over the past month by about 1 percent, while revenue estimates have risen fractionally.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 217.89.
The projected lower bound is: 203.42.
The projected closing price is: 210.66.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 32 white candles and 18 black candles for a net of 14 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with FACEBOOK INC A), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 86.2702. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 15 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 68.46. 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 15 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 105.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 5 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 2.760 at 209.990. Volume was 47% below average (neutral) and Bollinger Bands were 18% narrower than normal.
Open High Low Close Volume___
204.900 210.460 204.840 209.990 15,349,892
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 203.67 193.17 180.29
Volatility: 29 24 34
Volume: 15,056,688 17,095,684 23,570,802
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 16.5% above its 200-period moving average and is in an upward 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 bullish on FB.O and have had this outlook for the last 7 periods.