Facebook, Inc. (NASDAQ:FB) one worry is the growing push by regulators and politicians to crack down on Big Tech
Facebook stock rose 1.1% Wednesday to 197.20. That’s just below a 198.58 buy point from a long, deep cup-with-handle base. The cup depth of 44% is worrisome. However, the handle itself is long enough to be its own base. By that measure, Facebook stock does not have an unhealthy drop.
The relative strength line for Facebook stock has trended higher since late November. It’s just below its handle high, a bullish sign. The RS line, the blue line in the charts below, reflects a stock’s performance vs. the S&P 500 index.
Facebook earnings are expected to fall 7% in 2019. But analysts see EPS growth rebounding to a robust 32% in 2020.
One worry for Facebook and Google, and to a lesser extent Apple and Amazon, is the growing push by regulators and politicians to crack down on Big Tech. While Facebook stock and Google stock plunged on antitrust probe fears on June 3, helping to set the recent stock market low, investors haven’t been too concerned so far about threats to Big Tech business models.
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 183.28.
The projected upper bound is: 208.55.
The projected lower bound is: 186.39.
The projected closing price is: 197.47.
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 27 white candles and 23 black candles for a net of 4 white candles.
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 88.9908. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 67.02. 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 21 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 155.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 6 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 15 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 2.200 at 197.200. Volume was 41% below average (neutral) and Bollinger Bands were 46% wider than normal.
Open High Low Close Volume___
194.160 197.400 194.160 197.200 10,246,119
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 191.75 185.20 162.84
Volatility: 20 39 42
Volume: 14,349,340 18,068,014 21,539,784
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 21.1% 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 9 periods.
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