Facebook, Inc. (NASDAQ:FB) keeps growing with no sign of slowing down
Despite the scandals and controversies, Facebook analysts agree on one thing: The social media giant keeps growing with no sign of slowing down.
Analysts also agree that by all metrics, the company exceeded expectations posting strong fourth-quarter numbers after the bell on Wednesday.
Analysts pointed out that advertisers continue to spend money on the platform with record user growth and revenue still increasing and maybe things aren’t as bad as feared. “We’ve started to turn a corner and have a clear plan for what we need to do now,” CEO Mark Zuckerberg said on the earnings call.
Shares of the company were up more than 11 percent at the open.
Morgan Stanley analyst Brian Nowak titled his note, “This story is starting to get good,” and raised his price target to $190. He went on to say, “Facebook’s strong finish to 2018 – across the board 4Q revenue, EBIT, EPS and active user beats – speaks to the strength of its engagement, ad offering and ability to drive earnings power … even while navigating public scrutiny and aggressively investing to improve its platform safety/security, product offerings, and monetization.”
Evercore ISI analyst Anthony DiClemente said, “while growth should continue to slow near-term, longer term opportunities remain compelling as does broader bull thesis.”
Bank of America’s Justin Post went so far as to say: “While the 2019 margin outlook will continue to draw questions, we think 1Q revenue outlook appears conservative with upside potential.”
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 147.91.
The projected upper bound is: 180.21.
The projected lower bound is: 154.08.
The projected closing price is: 167.15.
A white body occurred (because prices closed higher 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 30 white candles and 20 black candles for a net of 10 white candles.
A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).
A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 3 rising windows in the last 50 candles–this makes the current rising window even more bullish.
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 74.6306. This is not an overbought or oversold reading. The last signal was a sell 10 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 71.89. 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 buy 46 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 419.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 7 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 buy 0 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 16.270 at 166.690. Volume was 189% above average (trending) and Bollinger Bands were 28% wider than normal.
Open High Low Close Volume___
165.600 171.680 165.000 166.690 77,233,600
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 149.38 140.35 166.92
Volatility: 69 59 50
Volume: 28,748,838 27,441,782 25,150,170
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 gapped up today (bullish) on heavy volume. Possibility of a Breakaway Gap which usually signifies the beginning of a major market move. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FACEBOOK INC A is currently 0.1% below its 200-period moving average and is in an upward trend. Volatility is extremely high when compared to the average volatility over the last 10 periods. There is a good possibility that volatility will decrease and prices will stabilize in the near term. 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 17 periods. Our momentum oscillator is currently indicating that FB.O is currently in an overbought condition.
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