Facebook, Inc. (NASDAQ:FB) decline on global equity selloff

Facebook, Inc. (NASDAQ:FB) decline on global equity selloff

Facebook, Inc. (NASDAQ:FB) decline on global equity selloff

The joy ride for internet stocks took a temporary detour on Monday.

Shares of industry stalwarts Facebook Inc. FB, -3.86%, Alphabet Inc.’s GOOGL, -3.47% GOOG, -3.49% Google, Snap Inc. SNAP, -3.35%, and others tumbled after China allowed its yuan currency to fall to a more-than-10-year low versus the dollar in an escalating trade war with the U.S.

See now: Dow tumbles over 500 points as yuan slide deepens U.S.-China trade fight deepens

All three stocks declined at least 3% — reversing for one day their gains the past week following a series of positive results that pushed their shares up. Shares of the companies, whose rising customer memberships have propelled advertising revenue to record levels, are all up at least 10% in 2019.

To add to their woes, Facebook and Twitter Inc. TWTR, -5.79%  were punished following shootings over the weekend that have investors jittery over intensified government oversight of the two social-media platforms. Twitter finished the day down 5.8%, which would be its biggest one-day decline since February. Facebook has dropped 3.8%.

Until today, Facebook appeared impervious to market machinations and regulatory oversight. That stock has climbed about 40% this year despite a record $5 billion settlement with the Federal Trade Commission; a report last week the FTC is examining Facebook’s acquisitions as part of a broader antitrust investigation of the social-networking giant; and withering scrutiny from state and national lawmakers. One presidential candidate, Sen. Elizabeth Warren, D-Mass., has vowed to break up Facebook and Google, with no apparent impact on either stock.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 192.11.

The projected lower bound is: 171.39.

The projected closing price is: 181.75.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 2 white candles and 8 black candles for a net of 6 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend. There have been 3 falling windows in the last 50 candles–this makes the current falling window even more bearish. The two candles preceding the falling window were black, which makes this pattern even more bearish.

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 12.0754. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a sell 13 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 30.78. 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 15 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 -233.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 13 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 11 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -7.290 at 181.730. Volume was 36% above average (neutral) and Bollinger Bands were 3% narrower than normal.

Open     High      Low     Close     Volume___
184.690 185.670 179.340 181.730 23,086,656
Technical Outlook 
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 195.82 189.76 167.03
Volatility: 27 36 42
Volume: 21,062,860 17,878,166 20,571,200

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 down today (bearish) 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 8.8% above its 200-period moving average and is in an downward 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 bearish on FB.O and have had this outlook for the last 3 periods.

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