Facebook, Inc. (NASDAQ:FB) Having Faith in the Stock
Tech stocks are taking a beating, all of them. The heavy-hitters, as represented by the FAANG acronym (Facebook, Amazon, Apple, Netflix, Google), have fallen dramatically.
Of the lot, Facebook stocks have been hit the hardest. This morning, the price hit a new low of $126.85, which is more than 40% below its high in July of $218.62. In total, Facebook’s value has dropped by over $253 billion.
As the social network continues to grapple with scandals over data privacy, the spread of disinformation, and faulty metrics, analysts and advertisers have continued to hammer away at the company. “Now we know Facebook will do whatever it takes to make money. They have absolutely no morals,” said Rishad Tobaccowala, chief growth officer for the Publicis Groupe to the New York Times.
It remains to be seen whether this is just a blip or a sign of continued tough times for both Wall Street and tech. For Facebook, it’s not just a market problem but reflective of an internal struggle. Following the most recent revelations about the company’s inability to fix its platform while allegedly waging a secret PR war against those critical of it, this could be the beginning of a big shift. Now, investors will wait to see if the company can rebound–or at least stop the bleeding.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
By the way, prices are vulnerable to a correction towards 158.65.
The projected upper bound is: 141.30.
The projected lower bound is: 122.22.
The projected closing price is: 131.76.
A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
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 24 white candles and 26 black candles for a net of 2 black 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 18.7729. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 The last signal was a buy 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 29.67. This is where it usually bottoms. The RSI usually forms tops and bottoms before the underlying security. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 51 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 -178.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -100. The last signal was a buy 4 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 sell 6 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 0.880 at 132.430. Volume was 49% above average (neutral) and Bollinger Bands were 16% narrower than normal.
Open High Low Close Volume___
127.030 134.159 126.850 132.430 41,939,476
Short Term: Oversold
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 141.96 153.92 174.28
Volatility: 42 40 47
Volume: 27,297,532 26,227,420 27,906,382
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 24.0% below its 200-period moving average and is in an downward 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 bearish on FB.O and have had this outlook for the last 42 periods. Our momentum oscillator is currently indicating that FB.O is currently in an oversold condition.