Facebook, Inc. (NASDAQ:FB) stock always has benefitted from audacity

Facebook, Inc. (NASDAQ:FB) stock always has benefitted from audacity

Facebook, Inc. (NASDAQ:FB) stock always has benefitted from audacity

Introducing “Libra” makes it appear as if Facebook (NASDAQ:FB) wants to become a country. If the move rubs the wrong people the wrong way it could be disastrous for Facebook stock.

Libra isn’t exactly a blockchain, but the company’s white paper keeps referring to it as one. Its Libra coin isn’t supposed to be a substitute for dollars or rubles, but the documentation makes clear that’s exactly what it is.

What gives Libra hope for success is that, if it works as intended, it makes all aspects of transaction processing electronic. If the coin’s value can be stable, if fraud can be prevented, Libra can avoid the costs associated not just with bank networks like Visa (NYSE:V) but central banks as well.

Libra Rollout and Facebook Stock

Crypto experts have been poring over the white paper like reporters at a Presidential debate since they hit the Web.

But experts aren’t the audience for this. Neither are Americans or even Europeans. That’s because, as Alex Danco of Social Capital notes, for hundreds of millions of people in the developing world Facebook is the entire Internet, the only scaled communication service that’s both global and entirely free to use.

Calling Libra a cryptocoin sends analysts down a rabbit hole arguing over whether it’s more like Bitcoin or Ethereum. What Facebook is really trying to build is a low-cost transaction system like Ant Financial, the transaction affiliate of Alibaba Group Holding (NASDAQ:BABA). Ant Financial, formerly called Alipay, runs a mobile payments platform and the world’s largest money market fund.

Once you understand that crypto is a straw man, that the real goal is to let Facebook operate its own financial transaction system, with its own currency, no Central Bank control, and its own rules, the audacity of Libra becomes clear.

Jennifer Grygiel of the Syracuse School of Journalism says the aim of Libra is to make Facebook an independent nation. She wants Libra blocked until it proves itself as more ethical than Facebook itself.

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 182.15.

The projected upper bound is: 204.42.

The projected lower bound is: 182.15.

The projected closing price is: 193.28.

Candlesticks

A white body occurred (because prices closed higher 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 27 white candles and 23 black candles for a net of 4 white 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 41.1295. This is not an overbought or oversold reading. 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 62.50. 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 18 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 79. This is not a topping or bottoming area. The last signal was a sell 3 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 12 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 3.500 at 193.000. Volume was 6% below average (neutral) and Bollinger Bands were 69% wider than normal.

Open High Low Close Volume___
190.550 193.200 189.940 193.000 16,378,878

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

Moving Averages: 10-period     50-period     200-period
Close: 189.72 184.37 162.34
Volatility: 30 39 42
Volume: 19,844,094 18,298,006 21,728,790

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 18.9% above its 200-period moving average and is in an upward trend. Volatility is high 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 bullish on FB.O and have had this outlook for the last 6 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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