Facebook, Inc. (NASDAQ:FB) promising technical opportunity arising

Facebook, Inc. (NASDAQ:FB) promising technical opportunity arising

Facebook, Inc. (NASDAQ:FB) promising technical opportunity arising

Shares of Facebook  (NASDAQ: FB ) have nosedived in recent weeks, but with the most recent price action in FB stock, there is a promising technical opportunity arising. Specifically, the price section around the $160 mark could indeed lead to a tradeable bounce for active investors and traders.

In order to fully grasp the scope of this opportunity, we must remind ourselves of the importance of understanding time-frames when trading or investing.

Indeed, confusing or mixing time frames is one of the biggest hurdles for traders and investors. For example, a stock may be oversold and ripe for a trading bounce of several days or weeks in the near term, but in the duration of months and quarters, the stock remains severely challenged technically, fundamentally and structurally.

My advice on overcoming this issue is to set a clear time-stop and time-target in addition to price stops and targets on any trades or investments. Of course, setting these and then actually sticking to them is another challenge …but that is a topic for another day.

Overall, the bias in prices is: Downwards.

Note: this chart shows extraordinary price action to the downside.

The projected upper bound is: 178.45.

The projected lower bound is: 157.96.

The projected closing price is: 168.21.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 25 white candles and 24 black candles for a net of 1 white candles.

A long lower shadow occurred. This is typically a bullish signal (particularly when it occurs near a low price level, at a support level, or when the security is oversold).

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 24.4498. This is not an overbought or oversold reading. The last signal was a buy 0 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 34.47. 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 1 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 -143.This is an oversold reading. However, a signal isn’t generated until the indicator crosses above -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 sell 20 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 0.670 at 168.170. Volume was 9% above average (neutral) and Bollinger Bands were 22% wider than normal.

Open High Low Close Volume___
167.480 168.720 164.630 168.170 19,758,316

Technical Outlook
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 177.40 181.02 161.30
Volatility: 53 36 42
Volume: 20,410,158 16,821,422 22,095,296

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 4.3% above its 200-period moving average and is in an downward 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 moderate flows of volume out of FB.O (mildly bearish). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 12 periods.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.

You must be logged in to post comments :  
CONNECT WITH