Facebook, Inc. (NASDAQ:FB) Crypto Needs Fed Help

Facebook, Inc. (NASDAQ:FB) Crypto Needs Fed Help

Facebook, Inc. (NASDAQ:FB) Crypto Needs Fed Help

As mighty as it is, Facebook apparently can’t realize its cryptocurrency dreams alone. In response to questions from the Senate Banking Committee, the social media giant said that its planned Libra cryptocurrency will require the assistance of large public-sector organizations, articles published after market close reported.

Facebook wrote that “[w]e want, and need, governments, central banks, regulators, non-profits, and other stakeholders at the table and value all of the feedback we have received.”

Earlier this year, Facebook sent a tremor through the financial world with the announcement that it would launch Libra, a so-called stablecoin cryptocurrency, in early 2020. 

The government is clearly concerned about Facebook’s attempt to effectively mint its own money. Both the Senate and the House of Representatives have scheduled hearings on the matter next week.

Facebook seems to be playing a diplomatic game here, which feels like the right tone to take, given that it falls into controversy more often than is strictly necessary. Maybe that even presages a new, more conciliatory approach to public bodies and regulators in the future.

Perhaps after-market traders feel the same way — the stock is up slightly in evening action.

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 185.75.

The projected upper bound is: 213.11.

The projected lower bound is: 192.67.

The projected closing price is: 202.89.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.

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 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 90.1578. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 14 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 71.33. This is where it usually tops. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 25 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 186.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 19 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 3.520 at 202.730. Volume was 18% above average (neutral) and Bollinger Bands were 18% wider than normal.

Open High Low Close Volume___
200.000 202.960 199.670 202.730 20,558,736

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

Moving Averages: 10-period     50-period     200-period
Close: 194.95 185.84 163.56
Volatility: 17 36 42
Volume: 12,999,256 16,527,822 21,410,332

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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FACEBOOK INC A is currently 24.0% 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 13 periods. Our momentum oscillator is currently indicating that FB.O is currently in an overbought condition.

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