Facebook, Inc. (NASDAQ:FB) can’t sustain its enormous rate of growth
The stock selloff “has everything to do with not being able to grow forever.
Facebook posted $13.2 billion in revenue for the three months that ended in June — just short of analysts’ estimates of $13.3 billion. It’s the first time the company has missed analyst targets for revenue since 2015.
The stock closed down 19% Thursday to $176.26, which means that investors erased the entirety of the company’s 2018 gains. Its market capitalization as of Wednesday: $630 billion.
By the end of trading Thursday, it was worth $510 billion after close and 170 million shares had changed hands. Facebook’s Thursday was the ugliest single-session decline since the company went public in 2012.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 195.11.
The projected lower bound is: 157.09.
The projected closing price is: 176.10.
A white body occurred (because prices closed higher 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 31 white candles and 19 black candles for a net of 12 white candles.
A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.
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 29.8582. This is not an overbought or oversold reading. The last signal was a sell 0 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 30.10. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 -364.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 0 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 sell 0 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -41.240 at 176.260. Volume was 463% above average (trending) and Bollinger Bands were 51% wider than normal.
Open High Low Close Volume___
174.890 180.130 173.750 176.260 169,803,664
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 207.13 196.45 181.55
Volatility: 124 62 44
Volume: 36,045,520 20,927,906 24,726,788
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 gapped down today (bearish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FACEBOOK INC A is currently 2.9% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 14 periods.
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