Facebook, Inc. (NASDAQ:FB) stock looks poised to do very well in 2019

Facebook, Inc. (NASDAQ:FB) stock looks poised to do very well in 2019

Facebook, Inc. (NASDAQ:FB) stock looks poised to do very well in 2019

After reaching bear-market territory, Facebook (NASDAQ:FB) stock may have finally begun its turnaround. Since hitting a low on Dec. 24, Facebook stock has risen by over 35%. The company’s better-than-expected-fourth-quarter earnings and revenue helped fuel the recovery.

FB stock could pull back since the shares have risen by over 35% from their December lows.

However, given the stock’s valuation and the continued growth of FB, Facebook stock should be bought on any weakness.

Threats to Facebook Stock

FB seemingly spent most of 2018 dealing with one allegation after the other. From allegations of facilitating Russia’s election manipulation to charges of blocking data access to allegations of  compromising privacy, the headlines helped cause a retreat of Facebook stock.

The probes of Facebook are continuing. On Friday, it was announced that the state attorneys general of Pennsylvania, North Carolina, and Illinois have begun to look into charges that FB mishandled user data.

Meanwhile, concerns about the European Union’s General Data Protection Regulation (GDPR) have weighed heavily on Facebook stock. Germany’s attempt to ban third-party data sharing is one example of how GDPR could significantly, negatively impact Facebook’s revenue.

FB Stock Is Bouncing Back

Fortunately, such probes and the rulings that come from them rarely deal crippling blows to companies. Now investors no longer appear to care about how these issues will affect Facebook stock. In the end, little has changed, as FB continues to dominate much of the social media sphere.

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 152.03.

The projected upper bound is: 179.59.

The projected lower bound is: 154.55.

The projected closing price is: 167.07.

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 30 white candles and 20 black candles for a net of 10 white candles.

A falling window occurred (where the bottom of the previous shadow is above the top of the current shadow). This usually implies a continuation of a bearish trend.

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 79.7885. This is not an overbought or oversold reading. The last signal was a sell 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 66.09. This is not a topping or bottoming area. However, the RSI just crossed below 70 from a topping formation. This is a bearish sign. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a sell 0 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 68. This is not a topping or bottoming area. The last signal was a sell 0 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 -4.110 at 166.380. Volume was 33% below average (neutral) and Bollinger Bands were 89% wider than normal.

Open High Low Close Volume___
168.200 169.240 165.250 166.380 17,517,608

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

Moving Averages: 10-period 50-period 200-period
Close: 160.08 143.81 166.96
Volatility: 69 56 50
Volume: 28,143,694 26,307,584 25,130,388

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 gapped down today (bearish) on normal volume. Possibility of a Runaway Gap which usually signifies a continuation of the trend. Four types of price gaps exist – Common, Breakaway, Runaway, and Exhaustion. Gaps acts as support/resistance.
FACEBOOK INC A is currently 0.3% below 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 22 periods.

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