Facebook, Inc. (NASDAQ:FB), Netflix Lead The FANG Stocks
Facebook and Netflix (NFLX) rallied about 1% apiece, leading the FANG stocks.
The social media giant is moving closer to a 198.58 buy point in a large cup with handle. Bullishly, the relative strength line is also nearing a new recent high, underscoring the stock’s recent outperformance vs. the general market. The RS line measures a stock’s price performance vs. the general market. Investors use the technical indicator to measure a stock’s market-beating potential.
Netflix is nearing a cup with handle’s 386.09 buy point. Last week, video streaming giant regained its 50-day line.
Amazon (AMZN) shares, meanwhile, are just 3% away from a 1,964.50 buy point in a large cup with handle. Shares dipped 0.1% in morning trade.
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 181.17.
The projected upper bound is: 203.81.
The projected lower bound is: 182.00.
The projected closing price is: 192.90.
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 28 white candles and 22 black candles for a net of 6 white 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 70.1988. This is not an overbought or oversold reading. The last signal was a sell 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 64.54. 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 14 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 106.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 11 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 8 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 1.460 at 192.600. Volume was 11% below average (neutral) and Bollinger Bands were 52% wider than normal.
Open High Low Close Volume___
192.420 193.980 191.570 192.600 15,508,955
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 185.02 183.51 161.82
Volatility: 29 39 42
Volume: 20,333,788 18,043,140 21,975,658
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 19.0% above its 200-period moving average and is in an upward trend. Volatility is high as compared to the average volatility over the last 10 periods. 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 2 periods.