Facebook, Inc. (NASDAQ:FB) Rising Stars of 2018

Facebook, Inc. (NASDAQ:FB) Rising Stars of 2018

Facebook, Inc. (NASDAQ:FB) Rising Stars of 2018

CEO Mark Zuckerberg has reportedly surpassed Berkshire Hathaway CEO, Warren Buffett, to become the third richest person in the world. Per Bloomberg, Zuckerberg now trails only Amazon CEO Jeff Bezos and Microsoft co-founder Bill Gates in the list of the richest persons in the world.

The increase in Zuckerberg’s wealth can be attributed to strong returns from Facebook shares, which hit a 52-week high of $203.64 on Jul 6, eventually closing at $203.23, up 15.2% on a year-to-date basis.

Reportedly, Zuckerberg sold roughly $3.58 billion worth of shares to-date in 2018 and now owns shares worth $77 billion, according to FactSet data, cited by MarketWatch. Zuckerberg has pledged to give away 99% of his Facebook stock in his lifetime.

Facebook’s Shares Unhurt by Data Privacy Scandal

The first-half of 2018 has not been good for Facebook. The company has drawn a lot of flak from the different quarters of the industry, due to the Cambridge Analytical data privacy scandal that impacted almost 87 million users.

The company has also been criticised for its data sharing practices. Facebook recently stated that it had granted a few companies a six-month extension to work in compliance with its new data sharing policy that was enacted in 2015.

Notably, following the Cambridge Analytical data breach news revelation in March, shares of the company lost around 20%. However, the stock managed to rebound over the past three months with returns of almost 20.9% since Mar 20.

The rebound reflects investors’ optimism over Facebook’s different initiatives that primarily aim at strengthening security measures of the platform.

Overall, the bias in prices is: Upwards.

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

The projected upper bound is: 212.54.

The projected lower bound is: 198.16.

The projected closing price is: 205.35.

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 32 white candles and 18 black candles for a net of 14 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).

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 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 94.6866. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 9 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 64.36. 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 9 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 149.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 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 sell 8 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 1.510 at 204.740. Volume was 38% below average (neutral) and Bollinger Bands were 35% narrower than normal.

Open High Low Close Volume___
204.930 205.800 202.120 204.740 18,149,436

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period 50-period 200-period
Close: 197.82 189.34 179.12
Volatility: 36 24 34
Volume: 18,091,598 18,479,800 23,769,756

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 14.3% 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 1 periods. The security price has set a new 14-period high while our momentum oscillator has not. This is a bearish divergence.

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