Facebook, Inc. (NASDAQ:FB) decline comes as U.S. shares fell across the board

Facebook, Inc. (NASDAQ:FB) decline comes as U.S. shares fell across the board

Facebook, Inc. (NASDAQ:FB) decline comes as U.S. shares fell across the board

The stock fell 2.4 percent on Monday, to $141.55, the lowest close since April 17, 2018, when it closed at $140.96. Facebook fell along with the broader market on Monday, sparked by an Apple supplier cutting its forecast, a rising U.S. dollar and ongoing concerns that a trade war will slow economic growth.

The Dow Jones Industrial Average declined 2.3 percent while the tech-heavy Nasdaq was down 2.8 percent. Facebook actually fell less than most big tech companies. Apple dropped 5 percent, Amazon fell 4.4 percent, and the S&P tech index declined 3.5 percent.

But of the most valuable U.S. tech companies, only Facebook has fallen so much of late that it’s down for the past year. The shares have lost 21 percent over the past 12 months, as the company has been plagued by numerous scandals related to its handling of user data, a major security breach impacting 30 million users and the spread of harmful content and misinformation across its various social services.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

By the way, prices are vulnerable to a correction towards 164.78.

The projected upper bound is: 150.16.

The projected lower bound is: 131.57.

The projected closing price is: 140.87.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 23 white candles and 27 black candles for a net of 4 black candles.

Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.

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 10.6762. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 10 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 35.40. 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 45 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 -141.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 8 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 sell 0 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -3.410 at 141.550. Volume was 31% below average (neutral) and Bollinger Bands were 28% narrower than normal.

Open High Low Close Volume___
144.480 145.040 140.490 141.550 18,542,124

Technical Outlook
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish

Moving Averages: 10-period 50-period 200-period
Close: 148.46 157.12 175.73
Volatility: 39 38 47
Volume: 27,550,816 25,755,876 28,030,512

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 is currently 19.4% below its 200-period moving average and is in an downward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods. Our volume indicators reflect volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 36 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH