Facebook, Inc. (NASDAQ:FB) can reach $215 under certain circumstances

Facebook, Inc. (NASDAQ:FB) can reach $215 under certain circumstances

Facebook, Inc. (NASDAQ:FB) can reach $215 under certain circumstances

Facebook (NASDAQ:FB) stock had a rough 2018, falling more than 25% and ending the year near its lows. To be fair, most stocks limped into the end of the year, but FB stock’s stumble was exacerbated by the company’s user-privacy issues throughout the year and fallout from the Cambridge Analytica scandal.

If Facebook CEO Mark Zuckerberg didn’t scoop up Instagram for $1 billion back in 2012 (that move, by the way, was heavily criticized) — I don’t know what kind of trouble FB stock would be in. Instagram has surged in recent years, topping 1 billion active users in June 2018. The valuation of the website would be enormous if it was not tucked under the Facebook umbrella. Instagram has kept FB stock alive and has been a major growth catalyst for FB.

On the other hand, while analysts on average expect Facebook’s revenue to surge 23.5% in 2019, analysts’ consensus estimate calls for flat bottom-line growth this year. If the company is incredibly disciplined and really excels, perhaps its earnings will rise 5%-10% in 2019, igniting Facebook stock. Given that FB — despite all of its issues — has beaten consensus EPS estimates 20 quarters in a row, that scenario could unfold.

Analysts are more optimistic about the company’s 2020 outlook, though. On average, they expect Facebook’s sales to jump 21% and its earnings to surge 17% next year.

Investors also have to keep Facebook’s balance sheet in mind. The company has $41 billion in cash and short-term investments, and no debt. As a result, FB has one of the best balance-sheet in the market and is very flexible.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 182.77.

The projected lower bound is: 162.57.

The projected closing price is: 172.67.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white 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 67.5000. This is not an overbought or oversold reading. The last signal was a sell 2 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 64.95. 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 22 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 103.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 2 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 4 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -0.150 at 171.920. Volume was 49% below average (consolidating)(neutral) and Bollinger Bands were 33% narrower than normal.

Open High Low Close Volume___
172.090 173.800 171.218 171.920 12,155,264

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

Moving Averages: 10-period 50-period 200-period
Close: 168.04 156.12 165.55
Volatility: 28 42 49
Volume: 16,605,432 20,386,010 24,225,918

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 3.8% 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 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 5 periods.

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