Facebook, Inc. (NASDAQ:FB) just hit an all-time high

Facebook, Inc. (NASDAQ:FB) just hit an all-time high

Facebook, Inc. (NASDAQ:FB) just hit an all-time high

Facebook hit a record high Monday, trading up more than 1%.

Shares touched a record $199.58 less than two months after the Cambridge Analytica disaster sent shares into a bear market.

The recently rally has largely been powered by a first-quarter earnings report in April that impressed Wall Street, sending shares up almost 8% in a single day. The social-media giant blew past Wall Street expectations on almost every metric for the quarter, in the midst of some concern that users would flee the platform over the data scandal.

In early June, Facebook managed to shrug off additional news that the company shared data with 60 other companies, many of which are device sellers. Two days later, Facebook admitted that it shared data with Chinese device makers, pushing shares marginally lower. Since then, shares have rallied 5.4%.

Facebook is up 9.3% this year, beating the S&P 500’s 2.75%.

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 181.08.

The projected upper bound is: 208.08.

The projected lower bound is: 190.18.

The projected closing price is: 199.13.

Candlesticks

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 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 30 white candles and 20 black candles for a net of 10 white candles.

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 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 88.4095. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 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 70.57. This is where it usually tops. 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 sell 1 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 145.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 8 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 0 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 2.460 at 198.310. Volume was 44% below average (neutral) and Bollinger Bands were 30% narrower than normal.

Open High Low Close Volume___
194.800 199.580 194.130 198.310 16,826,024

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 192.89 179.95 177.26
Volatility: 21 33 33
Volume: 17,043,668 22,932,770 23,378,824

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 11.9% above 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 moderate flows of volume into FB.O (mildly bullish). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 36 periods. Our momentum oscillator is currently indicating that FB.O is currently in an overbought condition. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH