Facebook, Inc. (NASDAQ:FB) JPMorgan predicts a rebound
Facebook Inc. shares are on track for their first down year in the company’s history, but analysts at JPMorgan are betting that 2019 will be a far better period for the stock.
The firm named Facebook FB, +0.35% its “best idea” among internet stocks for the coming year, citing a potential for the shares to outperform as the company executes on its efforts to improve the health of the Facebook platform.
“We expect Facebook to operate its way up the wall of worry in 2019,” wrote analyst Doug Anmuth. He’s upbeat about metrics on the core Facebook platform, which he said look healthy, as well as the company’s overall monthly-active-user trends.
New opportunities for Facebook include better monetization of Stories contentacross Facebook and Instagram. The company may also get more serious about making money off the Messenger and WhatsApp chat platforms.
Anmuth likes the stock’s valuation, with shares trading at 16.5 times 2020 GAAP earnings expectations. Shares have fallen 18% so far this year, to a recent $145. Anmuth has a $195 price target on the stock.
Overall, the bias in prices is: Downwards
The projected upper bound is: 154.44.
The projected lower bound is: 135.01.
The projected closing price is: 144.72.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.
A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).
A spinning top occurred (a spinning top is a candle with a small real body). Spinning tops identify a session in which there is little price action (as defined by the difference between the open and the close). During a rally or near new highs, a spinning top can be a sign that prices are losing momentum and the bulls may be in trouble.
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 80.5331. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 54.69. 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 14 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 126.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 12 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 buy 9 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 0.510 at 145.010. Volume was 27% below average (neutral) and Bollinger Bands were 32% narrower than normal.
Open High Low Close Volume___
145.570 145.850 143.190 145.010 18,148,610
Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 140.88 146.57 171.32
Volatility: 29 42 46
Volume: 24,307,956 25,425,326 27,858,634
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 15.4% below 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 1 periods.
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