Facebook, Inc. (NASDAQ:FB) Instagram Stories is expected to be the key catalyst for impression growth in 2019
Shares ofbuy-ranked Facebook have lost -7.5% over the past year, outperforming the Zacks Internet Services industry’s loss of -18.2% during the same period. Facebook is benefiting from solid mobile ad revenues driven by robust performance from both Instagram Stories and Feed. However, only Instagram Stories is expected to be the key catalyst for impression growth in 2019.
Moreover, Facebook needs to improve ad pricing to drive top-line growth. Further, the company’s plan to introduce commerce in Instagram is expected to be a major growth driver. Additionally, the company’s plan to integrate messaging apps – WhatsApp, Instagram and Messenger – will boost user experience by making the services more secure through end-to-end encryption.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 154.27.
The projected upper bound is: 175.36.
The projected lower bound is: 150.50.
The projected closing price is: 162.93.
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 28 white candles and 22 black candles for a net of 6 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 (which appears to be the case with FACEBOOK INC A). It then signifies that the momentum may be shifting from the bulls to the bears.
If the engulfing bearish pattern occurs during a downtrend, 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 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 19.3008. This is an oversold reading. However, a signal is not generated until the Oscillator crosses above 20 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 58.75. 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 6 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 -16. This is not a topping or bottoming area. The last signal was a sell 6 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 2 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -1.450 at 162.500. Volume was 39% below average (neutral) and Bollinger Bands were 68% wider than normal.
Open High Low Close Volume___
164.510 164.700 160.860 162.500 15,504,415
Short Term: Oversold
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 166.60 147.01 166.84
Volatility: 23 55 49
Volume: 15,752,181 24,997,136 24,399,528
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 2.6% 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 28 periods.