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Facebook, Inc. (NASDAQ:FB) price tumbled as an antitrust probe led by New York grew to include 47 attorneys general from US states and territories

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Facebook, Inc. (NASDAQ:FB) price tumbled as an antitrust probe led by New York grew to include 47 attorneys general from US states and territories

Facebook’s stock price tumbled as much as 4.4% on Tuesday as an antitrust probe led by New York grew to include 47 attorneys general from US states and territories.

The investigation was initially announced in September with the support of eight states including New York. The probe is expected to focus on whether Facebook’s handling of consumer data and if the company has engaged in any anti-competitive practices.

“Our investigation now has the support of 47 attorneys general from around the nation, who are all concerned that Facebook may have put consumer data at risk, reduced the quality of consumers’ choices, and increased the price of advertising,” New York Attorney General Letitia James said in a statement on Tuesday.

The expanded probe comes as Facebook already faces a different antitrust investigation being carried out by the Federal Trade Commission. Facebook also paid the agency a $US5 billion fine to settle another probe regarding the social media giant’s data privacy practices.

Facebook CEO Mark Zuckerberg is also set to testify on Capitol Hill on Wednesday to answer question’s about Libra, the company’s cryptocurrency project.

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 191.51.

The projected lower bound is: 173.05.

The projected closing price is: 182.28.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 23 white candles and 27 black candles for a net of 4 black candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FACEBOOK INC A), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 38.2118. This is not an overbought or oversold reading. The last signal was a sell 2 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 47.34. 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 70 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 22. This is not a topping or bottoming area. The last signal was a sell 2 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 9 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -7.420 at 182.340. Volume was 36% above average (neutral) and Bollinger Bands were 11% narrower than normal.

Open     High      Low     Close     Volume___
190.000 190.650 181.500 182.340 19,854,192
Technical Outlook 
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 185.41 183.98 178.77
Volatility: 39 32 35
Volume: 11,961,507 12,715,833 16,635,822

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.

Summary

FACEBOOK INC A is currently 2.0% 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 4 periods.

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S. Jack Heffernan Ph.D. Economist at Knightsbridge holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Crypto, Mining, Shipping, Technology and Financial Services.