Facebook, Inc. (NASDAQ:FB) gains after JPMorgan predicts strong turnaround
Facebook (FB) got a new lease of life this week after JPMorgn came up with an exceptionally bullish outlook on the company. Defying the negative sentiment on its prospects this year, with several experts predicting a further deterioration, the brokerage firm Tuesday said Facebook’s stock is on the road to a strong turnaround.
Maintaining the overweight rating and the $195 price target, the analyst gave thumbs up to the prospective investors in Facebook. The upbeat view contrasts with the widespread skepticism about the chances of Facebook rising from its current lows in the near term. The modest recovery that started after last month’s one-year low gathered pace following today’s announcement, and the stock gained about 3% in the early trading hours.
Overall, the bias in prices is: Downwards.
By the way, prices are vulnerable to a correction towards 147.17.
The projected upper bound is: 154.08.
The projected lower bound is: 130.84.
The projected closing price is: 142.46.
A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend.
Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.
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 95.6889. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 8 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 56.00. 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 30 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 142.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 8 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 3 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 4.480 at 142.530. Volume was 1% below average (neutral) and Bollinger Bands were 24% wider than normal.
Open High Low Close Volume___
139.890 143.140 139.540 142.530 26,263,792
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 134.30 140.06 167.84
Volatility: 60 54 49
Volume: 26,646,406 27,970,628 27,228,492
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 gapped up today (bullish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FACEBOOK INC A is currently 15.1% below its 200-period moving average and is in an upward trend. Volatility is high 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 1 periods. Our momentum oscillator has set a new 14-period high while the security price has not. This is a bullish divergence.