Facebook, Inc. (NASDAQ:FB) D.C. probe could open a can of worms
Washington’s probes of Facebook could open up a can of worms for the technology industry. Congress wants to hold the social-media platform accountable for Russian election meddling and other concerns. It could chip away at the broad legal immunity that internet firms have over what gets posted on their sites – and could engender lawsuits that cost them millions.
The legal protection enjoyed by Facebook and its peers has already sprung a leak. Section 230 of the 1996 Communications Decency Act says that internet companies will not be considered publishers of third-party content, protecting them from legal liability. In April, President Donald Trump signed a bill amending that provision to leave internet platforms legally exposed for criminal and civil violations of state and federal sex-trafficking laws. Afterward, the Justice Department shut down Backpage.com, a classified-ads website that has been linked to sex trafficking.
As bipartisan anger over Facebook has grown, lawmakers have started looking again at changes to Section 230. Senator Mark Warner wants to discuss revising the law to make an exception for election meddling by foreign actors like Russia. Other Republicans angry over perceived anti-conservative bias on Facebook, such as Senator Ted Cruz, want to amend Section 230 to have the immunity apply to only “neutral public platforms.”
Some tech companies fear that partly because of Facebook’s political problems, the sector may no longer have enough credibility to fight against such changes. Many former allies among Democrats, like Warner, have become increasingly critical. Other industries, sensing an opening, are lobbying to remove the legal protection for pirated content and sales of opioids and fake drugs. One tech lobbyist told Breakingviews that perhaps the best the tech groups can hope for is to mitigate the extent of any rollback, and to be thankful if they don’t lose their protection all together.
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 185.32.
The projected upper bound is: 208.72.
The projected lower bound is: 190.65.
The projected closing price is: 199.68.
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 31 white candles and 19 black candles for a net of 12 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 55.7442. This is not an overbought or oversold reading. The last signal was a sell 1 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 62.30. 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 1 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 50. This is not a topping or bottoming area. The last signal was a sell 1 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 up 2.650 at 199.000. Volume was 100% below average (consolidating) and Bollinger Bands were 27% narrower than normal.
Open High Low Close Volume___
197.600 199.100 196.230 199.000 301
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 198.15 184.26 178.09
Volatility: 27 33 34
Volume: 18,362,786 20,604,498 23,503,256
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 11.7% above 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 42 periods.