Facebook, Inc. (NASDAQ:FB) rose almost 1.9% on the day, closing at $212.60 per share, a 52-week high

Facebook, Inc. (NASDAQ:FB) rose almost 1.9% on the day, closing at $212.60 per share, a 52-week high

Facebook, Inc. (NASDAQ:FB) rose almost 1.9% on the day, closing at $212.60 per share, a 52-week high

Shares of internet giant Alphabet closed out the day at an all-time high on Monday as big tech companies saw gains that defied the rest of the market.

Google-parent Alphabet closed up 2.7% at $1,397.81 per share, which brings the company’s market cap to $964 billion.

Facebook rose almost 1.9% on the day, closing at $212.60 per share, which makes the social media giant worth $606.3 billion — a 52-week high, and just 3% off its all-time high of $218.62, set on July 25, 2018.

The record highs come as both companies face ongoing antitrust investigations by coalitions of state attorneys general.

In September, 50 attorneys general announced the launch of an investigation into Google over possible antitrust violations in its advertising business. The next month, CNBC reported that the attorneys general were preparing to expand their investigation into Google’s Android and search businesses.

Around the same time as the launch of the Google probe, 47 attorneys general announced an antitrust investigation into Facebook’s practices, which sent the stock down almost 4% that day.

However, Monday’s record highs suggest investors are unconcerned going into the new year about the ongoing investigations.

Alphabet’s record high comes nearly a month after former CEO and Google co-founder Larry Page relinquished his role to Sundar Pichai, former Google CEO. Pichai will help the company find new revenue streams, Pivotal Research Group analyst Michael Levine said as he upgraded the stock to a buy rating.

Levine said that regulatory concerns have historically been his firm’s biggest concern with Google, but that as the company diversifies revenue into other areas, regulation is a lesser investment risk.

“We are not minimizing the regulatory risk, but Doubleclick/ad-tech stack revenues are predominantly related to GOOG networks,” he said. “To the extent the government pursues an anti-trust case, we think GOOG would be well served to offer up some easy concessions.”

However, he did identify a number of risks the company will still face in 2020, including “prospective anti-trust actions given perception that GOOG is a monopoly in search/requires them to change business practice.”

Amazon stock also rose about 1.5% while Netflix gained more than 3.0%, though those gains leave the companies below historic highs.

Technical Indicators

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 196.37.

The projected upper bound is: 219.48.

The projected lower bound is: 206.78.

The projected closing price is: 213.13.

Candlesticks

A big white candle occurred. This is generally considered bullish, as prices closed significantly higher than they opened. If the candle appears when prices are “low,” it may be the first sign of a bottom. If it occurs when prices are rebounding off of a support area (e.g., a moving average, trendline, or retracement level), the long white candle adds credibility to the support. Similarly, if the candle appears during a breakout above a resistance area, the long white candle adds credibility to the breakout.
During the past 10 bars, there have been 5 white candles and 5 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is bullish.

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 91.3396. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a sell 7 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 67.82. 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 121 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 131.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 4 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 up 3.930 at 212.600. Volume was 28% above average (neutral) and Bollinger Bands were 27% wider than normal.

Open     High      Low     Close     Volume___
206.700 212.780 206.520 212.600 17,073,860
Technical Outlook 
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period     50-period     200-period
Close: 207.42 198.39 188.50
Volatility: 22 20 30
Volume: 12,622,977 13,899,711 14,978,609

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 12.8% 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 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 55 periods.

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