Facebook, Inc. (NASDAQ:FB) faces no existential threat under the current administration

Facebook, Inc. (NASDAQ:FB) faces no existential threat under the current administration

Facebook, Inc. (NASDAQ:FB) faces no existential threat under the current administration

One company is having a hard time capturing U.S. regulators: Facebook. It’s the subject of federal criminal investigation in New York, and is reportedly facing a record multi-billion-dollar fine from the Federal Trade Commission for violating its users’ privacy.

The latest: An NBC News investigation has found that Facebook would regularly barter its users’ privacy, opening up its treasured proprietary datasets to its most valuable partners, while denying them to potential rivals.

Regulators want to find Mark Zuckerberg personally liable, reports the Washington Post, rather than simply levying a large fine on the company. (In the context of what Wired calls “15 Months of Fresh Hell Inside Facebook,” a 10-figure fine at the corporate level would hardly cause Zuckerberg to raise a sweat.)

Zuckerberg has accepted personal responsibility for Facebook’s failings in speeches and in Congressional testimony, but Facebook is reportedly pushing back hard on attempts to get him to personally certify that his company is adhering to agreed privacy practices.

What we’re seeing: Facebook recently announced the departure of Erskine Bowles from its board of directors, noting that he has “served on the board since 2011”. Bowles famously grilled Zuckerberg over how he allowed Russian interference in the 2016 U.S. presidential election.

Trump supporter Peter Thiel, who has sat on Facebook’s board since 2005, remains there, despite attempts to remove him. Thiel, a multibillionaire, owns just $5 million of Facebook stock; Zuckerberg has said it would be “crazy” to remove him from the board.

The bottom line: Facebook faces no existential threat under the current administration. But if someone like Elizabeth Warren becomes the next president, that might change.

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 168.49.

The projected upper bound is: 185.11.

The projected lower bound is: 171.76.

The projected closing price is: 178.44.

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 24 white candles and 25 black candles for a net of 1 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 48.2906. This is not an overbought or oversold reading. The last signal was a sell 2 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 64.59. 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 49 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 51. This is not a topping or bottoming area. The last signal was a sell 6 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 buy 12 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -0.500 at 178.280. Volume was 44% below average (neutral) and Bollinger Bands were 5% narrower than normal.

Open High Low Close Volume___
178.800 178.880 177.340 178.280 11,655,608

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

Moving Averages: 10-period 50-period 200-period
Close: 177.82 168.82 162.53
Volatility: 11 25 49
Volume: 11,242,409 15,918,501 23,989,190

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 9.7% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into FB.O (mildly bullish). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 12 periods.

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