Facebook, Inc. (NASDAQ:FB) may no longer be a growth company
Facebook (FB) has had a turbulent 2018. From the Cambridge Analytica scandal that sank the social media’s stock price in March to disappointing Q2 results in June, the patience of Facebook investors has been tested time and time again.
On 30 October, Facebook released their Q3 earnings, which seemed to be a mixed bag.
Revenue, daily active users (DAUs) and monthly active users (MAUs) all increased in Q3 but all three still did not meet analysts expectations.
ccording to CNBC, analysts were expecting Q3 revenue to come in at $13.78 billion ($13.73 billion actual), DAUs to be 1.51 billion (1.49 actual) and MAUs to be 2.29 billion (2.27 actual).
However, the company only marginally missed expectations and considering Facebook’s current position, this could be promising.
As already stated, 2018 has not been kind to Facebook. Addressing the Cambridge Analytica scandal, Facebook declared it would heavily invest in security. Predictably, such a substantial investment damaged Facebook’s overall financials in Q2.
Overall, the bias in prices is: Downwards.
Note: this chart shows extraordinary price action to the downside.
The projected upper bound is: 160.52.
The projected lower bound is: 142.10.
The projected closing price is: 151.31.
A white body occurred (because prices closed higher 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 25 white candles and 25 black candles.
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 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 64.8729. This is not an overbought or oversold reading. The last signal was a buy 3 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 45.92. 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 38 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 -10. This is not a topping or bottoming area. The last signal was a buy 1 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 down -0.040 at 151.750. Volume was 4% below average (neutral) and Bollinger Bands were 31% narrower than normal.
Open High Low Close Volume___
151.520 152.750 149.350 151.750 25,640,786
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 149.74 161.04 177.08
Volatility: 55 37 47
Volume: 30,304,174 25,520,674 28,101,770
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 14.3% below its 200-period moving average and is in an downward 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 volume flowing into and out of FB.O at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 29 periods.