Facebook, Inc. (NASDAQ:FB) stock is poised to jump tremendously in 2019

Facebook, Inc. (NASDAQ:FB) stock is poised to jump tremendously in 2019

Facebook, Inc. (NASDAQ:FB) stock is poised to jump tremendously in 2019

Social media giant Facebook (NASDAQ:FB) had a rough 2018, as it was hit by data-privacy scandals, regulation crackdowns, slowing revenue growth, compressing margins, plenty of bad press, and a falling stock.

But FB still owns the four most-widely-used-internet properties in the world. Each of them has over a billion users, and only two are being monetized to their potential. Plus, continuous drivers are propelling the global-digital-advertising-market, where Facebook reigns supreme alongside Alphabet (NASDAQ:GOOG), to double-digit-percentage growth.

Thus, in the big picture, FB is not only big and here to stay, but it has plenty of growth left, too. Because of that, it’s only a matter of time before Facebook stock rebounds tremendously.

From a fundamental, technical, and sentiment perspective, that big rebound could happen in 2019. The fundamentals will start to bottom in the first half of 2019 and accelerate towards the back half of the year and into 2020. Meanwhile, the technicals imply that Facebook stock may have already put in a bottom, and sentiment towards the stock market is well-positioned to improve substantially in 2019.

Facebook’s properties are very sticky. Consumers love the internet. They also love being on their phones. They spend half of the time on their phones with just five apps. Depending on users’ age and location, FB owns between two and four of those five apps.

While there have been some movements calling for users to delete Facebook, the vast majority of consumers haven’t followed that advice. The user base of Facebook’s platform is still growing globally, Instagram remains the hottest app on the planet, and Messenger and WhatsApp, the top two communication apps globally, have not been hurt by Facebook’s data-privacy drama.

Because Facebook’s user base hasn’t dropped, it hasn’t lost any advertisers. Performance and reach are the main concerns of advertisers. Political noise is a sideshow. FB is still delivering on performance and reach better than pretty much everyone else. As a result, advertisers are sticking with the platform even after its troubled 2018.

Because of that, today’s revenue growth slowdown won’t last forever. Under the hood, Facebook’s growth rates are slowing because the company is transitioning from its tried-and-true News Feed formats that carry high ad-unit prices to still-nascent Stories formats that carry lower ad-unit prices.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 155.38.

The projected lower bound is: 132.97.

The projected closing price is: 144.18.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 27 white candles and 23 black candles for a net of 4 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 95.9601. This is an overbought reading. However, a signal is not generated until the Oscillator crosses below 80 The last signal was a buy 10 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 57.63. 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 32 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 137.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 10 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 5 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -0.030 at 144.200. Volume was 39% below average (neutral) and Bollinger Bands were 28% wider than normal.

Open High Low Close Volume___
143.080 144.560 140.840 144.200 16,125,004

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

Moving Averages: 10-period 50-period 200-period
Close: 137.32 139.90 167.68
Volatility: 43 52 49
Volume: 24,300,558 27,669,064 26,521,514

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 14.0% below 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 3 periods.

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