Facebook, Inc. (NASDAQ:FB) falls after concerns that a shift in company direction and executive departures will negatively impact its valuation

Facebook, Inc. (NASDAQ:FB) falls after concerns that a shift in company direction and executive departures will negatively impact its valuation

Facebook, Inc. (NASDAQ:FB) falls after concerns that a shift in company direction and executive departures will negatively impact its valuation

Facebook stock fell Monday as a Wall Street analyst downgraded the social networking giant on concerns that a shift in company direction and executive departures will negatively impact its valuation.

Facebook stock fell 3.3%, closing at 160.47, on the stock market today.

Facebook stock is down 5% since last Thursday after announcing its Chief Product Officer, Chris Cox, had resigned. Chief Executive Mark Zuckerberg announced that Chris Daniels, vice president of the Facebook messaging app WhatsApp, is leaving as well.

The resignations came a day after the New York Times reported that Facebook is under criminal investigation by federal prosecutors over data deals with electronics manufacturers.

Previous departures include Kevin Systrom and Mike Krieger, co-founders of Instagram, the Facebook-owned photo-sharing app.

“We prefer to move to the sidelines until we see senior employee turnover stabilize,” Martin wrote. She maintained a price target on Facebook stock of 170. The stock is looking for support near its 200-day line.

Facebook’s reputation nose-dived in a poll of consumers released early this month. Facebook’s reputation score in the top 100 plunged 43 points, belly-flopping into the 94th position, from 51.

Overall, the bias in prices is: Sideways.

The projected upper bound is: 171.40.

The projected lower bound is: 150.69.

The projected closing price is: 161.04.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 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 25.4087. This is not an overbought or oversold reading. The last signal was a sell 6 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 43.08. 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 26 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 -113.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a sell 2 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 1 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -5.510 at 160.470. Volume was 61% above average (neutral) and Bollinger Bands were 24% narrower than normal.

Open High Low Close Volume___
163.570 163.900 159.280 160.470 37,524,192

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

Moving Averages: 10-period 50-period 200-period
Close: 169.65 158.88 165.18
Volatility: 34 42 49
Volume: 21,691,102 20,516,888 24,481,944

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 2.8% below its 200-period moving average and is in an upward 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 bullish on FB.O and have had this outlook for the last 9 periods.

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