Facebook, Inc. (NASDAQ:FB) Outpaces Stock Market Gains

Facebook, Inc. (NASDAQ:FB) Outpaces Stock Market Gains

Facebook, Inc. (NASDAQ:FB) Outpaces Stock Market Gains

Shares of Facebook have been struggling since reporting earnings more than a month ago. However, the stock has started to show signs of promise over the past few trading sessions.

While Facebook stock is down 1% Tuesday to $183.73, shares are still holding up over a key resistance mark that’s been in place since mid-July. Further, it’s holding up over key support as well.

It’s been a long road for FB stock to get back to these levels. After a largely disappointing quarter 13 months ago, Facebook stock found itself in the dog house. No one wanted to touch this name, even if it was the premier social media stock.

Now shares are on the road to recovery — albeit, a rocky one. While Facebook stock is up 40% so far in 2019, it’s lagging the gains of both Twitter and Snap, which are up 47% and 186%, respectively. Facebook also lags its competitors over the trailing 12 months, up just 4.5% over that time.

Technical Indicators

Overall, the bias in prices is: Sideways.

By the way, prices are vulnerable to a correction towards 188.21.

The projected upper bound is: 196.60.

The projected lower bound is: 178.37.

The projected closing price is: 187.49.

Candlesticks

A black body occurred (because prices closed lower 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 23 white candles and 27 black candles for a net of 4 black candles.

Momentum Indicators

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.

Stochastic Oscillator

One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 81.9264. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 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 51.40. 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 sell 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 110.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 period(s) ago.

MACD

The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 5 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -3.410 at 187.490. Volume was 3% below average (neutral) and Bollinger Bands were 46% narrower than normal.

Open     High      Low     Close     Volume___
190.210 190.210 186.350 187.490 15,226,820
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bearish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 184.03 191.61 171.17
Volatility: 32 31 40
Volume: 12,106,365 14,480,105 19,085,784

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.

Summary

FACEBOOK INC A is currently 9.5% above its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on FB.O and have had this outlook for the last 26 periods.

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