Facebook, Inc. (NASDAQ:FB) Heffx Trading Outlook

Facebook, Inc. (NASDAQ:FB) Heffx Trading Outlook

Facebook, Inc. (NASDAQ:FB) Heffx Trading Outlook

Buy-ranked Facebook ‘s shares have gained +27.7% year to date, outperforming the S&P 500’s increase of +12.6% during the same period. The Zacks analyst thinks Facebook will benefit from mobile ad revenues driven by robust performance of Instagram Stories and an expanding user base in 2019.

Further, the company’s plan to introduce commerce in Instagram is estimated to be a major growth driver. The growing appeal of the company’s Workplace platform, which has now more than two million paid users, is another key catalyst.

Additionally, its plan to integrate messaging apps – WhatsApp, Instagram, and Messenger – will boost user experience by making the services more secure through end-to-end encryption. The company’s initiatives to curb the “fake news” menace and data breaches are other positives. However, continued mix shift toward Stories is expected to hurt ARPU. Increasing regulatory headwinds is also a concern.

Overall, the bias in prices is: Upwards.

The projected upper bound is: 176.39.

The projected lower bound is: 156.17.

The projected closing price is: 166.28.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 26 white candles and 24 black candles for a net of 2 white candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FACEBOOK INC A), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 70.8894. This is not an overbought or oversold reading. The last signal was a buy 5 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 51.31. 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 33 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 -12. This is not a topping or bottoming area. The last signal was a buy 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 sell 8 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -1.810 at 165.870. Volume was 54% below average (consolidating) and Bollinger Bands were 34% narrower than normal.

Open High Low Close Volume___
167.850 168.940 164.790 165.870 10,620,299

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

Moving Averages: 10-period 50-period 200-period
Close: 165.39 162.10 164.26
Volatility: 33 41 49
Volume: 20,981,214 19,917,092 24,371,000

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 1.0% above its 200-period moving average and is in an downward 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 bearish on FB.O and have had this outlook for the last 6 periods.

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