Facebook, Inc. (NASDAQ:FB) Earnings Arrive During Challenging Time
Facebook earnings are due after the market close Tuesday, rounding out tech earnings from the high-profile FANG stocks.
Analysts see Facebook (FB) reporting adjusted earnings of $1.47 per share. That’s down 8% from the year-ago period and its first decline in 13 quarters.
Estimates call for revenue of $13.78 billion. That’s up 34% from the year-ago period but its slowest growth in more than four years.
Facebook stock closed at 142.09, down 2.3% on the stock market today.
Shares of Facebook plunged 19% on July 26 after the company reported second-quarter earnings that missed estimates on revenue. It also lowered revenue guidance for the third and fourth quarters. The stock drop sliced a chunk more than $100 billion in market value off Facebook stock that day.
The stock plummeted below its 50-day and 200-day moving averages in intense trading. Facebook stock is down 33% from its record high of 218.82 on July 25.
A constant flow of negative media reports and skepticism among analysts is damaging Facebook stock. This stems from privacy issues, data security breaches and misinformation on its platform. Early this month Facebook said it deleted more than 800 U.S. publishers and accounts for delivering a flood of political messages that consistently violated spam policies.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 150.11.
The projected lower bound is: 132.81.
The projected closing price is: 141.46.
A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black 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 24.3236. This is not an overbought or oversold reading. The last signal was a buy 0 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 31.41. 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 35 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 -190.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 10 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 3 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -3.280 at 142.090. Volume was 21% above average (neutral) and Bollinger Bands were 24% narrower than normal.
Open High Low Close Volume___
148.500 148.830 139.030 142.090 31,336,784
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 152.08 162.42 177.51
Volatility: 53 35 46
Volume: 22,521,860 23,955,080 27,857,824
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 20.0% below 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 moderate flows of volume out of FB.O (mildly bearish). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 26 periods. The security price has set a new 14-period low while our momentum oscillator has not. This is a bullish divergence.