Facebook, Inc. (NASDAQ:FB) could hit new all-time highs
Shares of Facebook have been trading much better over the last six months. Shares are flirting with a move back over $200 and if it can get there, it could trigger a much higher move back to its all-time highs.
While the stock was hammered in late-May and early June, the rebound since has been impressive. The stock has run from roughly $160 to currently just over $195. That rally of almost 22% stands out, both among FAANG stocks and the overall market.
It helps that Facebook unveiled the Libra cryptocurrency. The fact that the currency has so many large supporters adds credibility to the excitement. Adding even more excitement has been the rally in bitcoin. Even though bitcoin prices have come off the recent highs, its explosive — although brief — move to $14,000 rekindled investors’ hope that new highs in the cryptocurrency remain possible.
Should it regain and maintain some of that bullish momentum, Facebook stock is likely to benefit as well.
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 183.60.
The projected upper bound is: 207.75.
The projected lower bound is: 185.60.
The projected closing price is: 196.68.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
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.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 93.9740. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 11 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 65.35. 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 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 126.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 16 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -0.800 at 196.400. Volume was 35% below average (neutral) and Bollinger Bands were 33% wider than normal.
Open High Low Close Volume___
196.180 197.070 194.170 196.400 11,164,107
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 192.43 185.48 163.01
Volatility: 20 39 42
Volume: 14,002,177 17,545,500 21,490,578
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 20.5% 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 10 periods.
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