Facebook, Inc. (NASDAQ:FB) stock swinging back into bull territory
With the passage of time replacing post-earnings technical concerns and FB stock swinging back into bull territory with supportive technical evidence in tow, the combination is reaffirming a continuation of FB stock’s uptrend.
Facebook still needs to clear its recent highs, which unsuccessfully challenged the 50% retracement level. But I’m optimistic the next test will find Facebook stock easily clearing resistance. And in my view, and as stated above, shares are ready for purchase today without requiring any additional price confirmation.
My initial price target for FB stock is $200 a share. I like the $200 level as it’s a whole number, is roughly mid-way inside of this past summer’s bearish price gap and offers upside of about 20%. Still, in the event that other gaps like January’s earnings-driven reaction appear more likely to get filled first, using a stop below $159 keeps the exposure manageable relative to the reward. And it’s also a technically compelling choice as it considers that other price gap too.
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
The projected upper bound is: 183.41.
The projected lower bound is: 160.63.
The projected closing price is: 172.02.
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 29 white candles and 21 black candles for a net of 8 white candles.
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.
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 80.6887. 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 67.64. 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 17 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 240.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a buy 7 period(s) ago.
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a sell 13 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 3.890 at 171.260. Volume was 6% above average (neutral) and Bollinger Bands were 47% narrower than normal.
Open High Low Close Volume___
167.370 171.880 166.550 171.260 26,068,072
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bullish
Moving Averages: 10-period 50-period 200-period
Close: 163.84 152.03 165.88
Volatility: 27 50 49
Volume: 15,563,035 22,466,194 24,149,324
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.
FACEBOOK INC A is currently 3.2% above its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. 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 0 periods.
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