Facebook, Inc. (NASDAQ:FB) Entry at $170.00

Facebook, Inc. (NASDAQ:FB) Entry at $170.00

Facebook, Inc. (NASDAQ:FB) Entry at $170.00

Facebook (NASDAQ:FB) has bounced back to February’s bull market high after a March data-sharing scandal dumped the social media giant 36 points in less than two weeks. Bulls now hope for a breakout that opens the door to much higher prices, but bears hold the short-term advantage and could shake out a large supply of weak-handed shareholders before a new trend advance sets into motion.

The stock fell from high to low in 36 sessions, bottomed out on March 26 and turned higher into June, with the return trip taking 48 sessions. The V-pattern in place following this bipolar action looks unstable and in need of a higher low to support a healthy breakout above $200. As a result, a pullback that tests or fills the April 26 gap between $169 and $170 appears likely, with the 200-day exponential moving average (EMA) and a head and shoulders neckline cutting through that level.

Still, the strong recovery effort into June reflects considerable momentum that could generate a quick buying spike into channel resistance at $208 before bears get the upper hand and generate a multi-week reversal. Trend followers may wish to sit on their hands if that happens, awaiting a more advantageous trade setup that might not unfold until the company reports second quarter earnings on July 25.

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 179.86.

The projected upper bound is: 201.42.

The projected lower bound is: 182.93.

The projected closing price is: 192.17.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 8 white candles and 2 black candles for a net of 6 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 white candles.

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 36.2239. This is not an overbought or oversold reading. The last signal was a sell 3 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 62.87. 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 4 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 52. This is not a topping or bottoming area. The last signal was a sell 3 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 2 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 2.440 at 191.540. Volume was 58% below average (consolidating) and Bollinger Bands were 40% narrower than normal.

Open High Low Close Volume___
188.810 192.600 188.800 191.540 12,928,907

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

Moving Averages: 10-period 50-period 200-period
Close: 190.56 176.10 176.58
Volatility: 21 35 33
Volume: 18,237,782 25,474,680 23,239,990

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 8.5% above its 200-period moving average and is in an upward 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 bullish on FB.O and have had this outlook for the last 31 periods.

 

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