Facebook, Inc. (NASDAQ:FB) For the Long Haul, Still a Buying Opportunity
The Facebook Inc. (Nasdaq: FB) stock price is trading at all-time highs right now ($209.99 per share), but there’s still time to double your money on this tech juggernaut.
A few years back – when Facebook was in the doghouse – I predicted it would double. And it did. It’s going to double again from here – and more quickly than you think.
In March 2018, Facebook (FB) was facing what threatened to be a major crisis of public opinion. The company had already been identified as a vehicle of Russian interference in the 2016 election and then the FTC confirmed that it opened an investigation into the company’s privacy policies and protection of user data in the wake of the Cambridge Analytica scandal.
One thing institutional investors love about Facebook – and that allows the stock to weather these storms – is that it has become a huge generator of free cash flow. With operating cash flows growing much faster than expenditures, the company has $44B of cash and equivalents on hand to expand and develop new products and services and also to buy back shares.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 215.96.
The projected lower bound is: 201.38.
The projected closing price is: 208.67.
A black body occurred (because prices closed lower than they opened).
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 30 white candles and 20 black candles for a net of 10 white 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 77.9346. This is not an overbought or oversold reading. The last signal was a sell 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 64.08. 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 17 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 84. This is not a topping or bottoming area. The last signal was a sell 0 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 buy 7 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -1.270 at 208.090. Volume was 60% below average (consolidating) and Bollinger Bands were 10% narrower than normal.
Open High Low Close Volume___
208.770 209.990 207.760 208.090 11,350,429
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 206.30 194.38 180.67
Volatility: 20 24 34
Volume: 14,407,850 16,943,902 23,560,564
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 15.2% 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 9 periods.