Facebook, Inc. (NASDAQ:FB) continues to do irritating things, but that doesn’t appear to have fazed investors
There’s no question that whatever was plaguing Facebook (NASDAQ:FB) and FB stock in the second half of 2018 has left the building. Facebook is on fire in 2019, up 47% year to date, getting closer to its all-time high of $218.62.
I don’t think there’s any doubt that Facebook is a great stock to own. Investors who bought FB stock during the company’s initial public offering back in May 2012, when it went public at $38 a share, today would have an annualized total return of about 26%.
If Facebook were to keep this up for another 13 years, anyone who was still holding FB stock 20 years after its IPO would have almost $1 million from an initial investment of $10,000.
While FB might be a great stock, I doubt many Environmental, Social and Governance (ESG) investors, who look for sustainable, ethical stocks, are clamoring to own it. Here’s why.
Workplace Tension Continues to Boil
On several occasions in the past, I have been supportive of Facebook stock. Most recently, on May 21, I called it a buy despite the fact that Facebook’s management was being less than transparent with FB’s employees.
But a CNBC article about former Facebook recruiters suggested that top college graduates have been more frequently refusing to work for the company. Not only that, but potential recruits were asking tough questions of the company, many of which were ESG-related.
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 182.38.
The projected upper bound is: 204.42.
The projected lower bound is: 182.16.
The projected closing price is: 193.29.
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.
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 63.6791. This is not an overbought or oversold reading. The last signal was a sell 8 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 62.50. 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 19 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 94. This is not a topping or bottoming area. 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 13 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed unchanged at 193.000. Volume was 19% below average (neutral) and Bollinger Bands were 59% wider than normal.
Open High Low Close Volume___
195.210 195.280 191.930 193.000 14,204,690
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 190.12 184.66 162.49
Volatility: 20 39 42
Volume: 18,318,574 18,348,988 21,679,424
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 18.8% 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 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 7 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.
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