Facebook, Inc. (NASDAQ:FB) More Upbeat
Facebook (FB) went through a rough 2018. After multiple privacy and data scandals, CEO Mark Zuckerberg was forced to testify in front of Congress, as the company dragged through the mud by the media. As a result, the company’s stock lost 40% of its value in the second half of 2018, even as the company continued producing strong financials. But the company seems to be turning a corner on the stock market: Last week, Facebook announced it had surpassed Q4 earnings estimates, sending the stock soaring. FB stock has scored about 30% since the beginning of the year versus the S&P 500’s gain of 9.5%.
Looking at the past quarter, the analyst likes improving core Facebook engagement rates, higher unique users across all platforms and the growing success of Instagram Stories, which increased from 400 million DAUs (June) to 500 million DAUs. However, the analyst is mindful that ad pricing decreased 2% in the fourth quarter, while revenue deceleration has continued. Finally, while margins remain healthy, Josey says he sees “gross margin pressures going forward as Facebook hardware ramps.”
Bottom line: Investors always love Facebook’s financials. But the company still faces a number of non-quantifiable challenges this year, most important being regulation. Even amid this threat, Wall Street analysts are still confident in the company. TipRanks analysis of 40 analysts, shows a consensus Moderate Buy; of the 40 analysts, 31 recommend Buy, while 6 say Hold and 3 are selling. There is an average price target of $187.34, which represents an 11% upside.
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 149.33.
The projected upper bound is: 182.46.
The projected lower bound is: 157.55.
The projected closing price is: 170.00.
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 31 white candles and 19 black candles for a net of 12 white candles.
An engulfing bullish line occurred (where a white candle’s real body completely contains the previous black candle’s real body). The engulfing bullish pattern is bullish during a downtrend. It then signifies that the momentum may be shifting from the bears to the bulls.
If the engulfing bullish pattern occurs during an uptrend (which appears to be the case with FACEBOOK INC A), it may be a last engulfing top which indicates a top. The test to see if this is the case is if the next candle closes below the top of the current (white) candle’s real body.
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 84.2006. 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 72.58. 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 48 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 156.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 9 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 2 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 3.540 at 169.250. Volume was 25% below average (neutral) and Bollinger Bands were 57% wider than normal.
Open High Low Close Volume___
165.700 169.300 163.620 169.250 20,036,470
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 153.04 141.63 166.92
Volatility: 70 56 50
Volume: 29,151,382 26,826,376 25,185,822
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 1.4% above 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 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 19 periods. Our momentum oscillator is currently indicating that FB.O is currently in an overbought condition.