Facebook, Inc. (NASDAQ:FB) Key Levels
Facebook, Inc. (FB) shares closed the first half of 2019 at $193.00, which became a key input to my proprietary analytics. The only level left over from the first half is its annual pivot at $181.70, which is now considered a value level. The daily chart shows a “golden cross,” and the weekly chart has been positive since the week of June 21, when the stock closed at $191.14.
Fundamentally, Facebook is reasonably priced for a FAANG stock with a P/E ratio of 29.18 without paying a dividend, according to Macrotrends. The stock is one of four FAANG stocks under investigation by the Department of Justice. When Facebook reported earnings back on July 25, 2018, there was a huge gap lower on July 26 on missed expectations. This reflected the fall-out from the social media giant’s privacy scandals.
Facebook had a positive reaction to earnings released on April 24, and the stock popped to its 2019 high of $198.48 on April 25. Shares of Facebook then slumped with a correction of 18.9% to a low of $160.84 set on June 4. This low was a test of the 200-day simple moving average at $161.33 as a buying opportunity.
In the longer term, Facebook stock is consolidating a bear market decline of 43.7% from its all-time intraday high of $218.62 set on July 25, 2018, to its Dec. 24 low of $123.02. The stock has been strong in 2019, with a gain of 49.8% year to date, and it is up a bull market 59.6% since its Dec. 24 low. Even so, the stock is also in correction territory at 10.2% below its July 25 high.
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 183.78.
The projected upper bound is: 205.95.
The projected lower bound is: 185.67.
The projected closing price is: 195.81.
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 29 white candles and 21 black candles for a net of 8 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 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 87.1260. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 12 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 63.97. 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 23 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 96. This is not a topping or bottoming area. The last signal was a sell 0 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 17 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -0.640 at 195.760. Volume was 44% below average (neutral) and Bollinger Bands were 24% wider than normal.
Open High Low Close Volume___
195.190 196.680 193.640 195.760 9,600,028
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 192.90 185.53 163.19
Volatility: 20 36 42
Volume: 12,687,064 16,654,524 21,426,252
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 20.0% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 11 periods.