Facebook, Inc. (NASDAQ:FB) stocks jumps 2.5% after Instinet upgrades to buy

Facebook, Inc. (NASDAQ:FB) stocks jumps 2.5% after Instinet upgrades to buy

Facebook, Inc. (NASDAQ:FB) stocks jumps 2.5% after Instinet upgrades to buy

Instinet analysts upgraded Facebook Inc. stock FB, +1.46% to buy from neutral on Monday, and raised its price target to $215 from $172. Analyst Mark Kelley said he had downgraded the stock last year because he thought the transition to the video-sharing feature Stories would take longer than bulls were expecting.

“However, as we heard at industry events earlier this year and in our own conversations, the transition appears to be occurring more quickly than we expected, lessening our concern,” Kelley wrote in a note to clients. The analyst raised his fiscal 2019 estimated EBITDA (earnings before interest, taxes, depreciation and amortization) to $36.2 billion from $35.6 billion and raised his fiscal 2020 estimate to $46.3 billion from $41.3 billion. Facebook shares were up 2.5% Monday and have gained 32% in 2019 so far, while the S&P 500 SPX, +1.47% has gained 10%.

Overall, the bias in prices is: Upwards.

Note: this chart shows extraordinary price action to the upside.

The projected upper bound is: 182.92.

The projected lower bound is: 162.73.

The projected closing price is: 172.83.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 4 white candles and 6 black candles for a net of 2 black candles. During the past 50 bars, there have been 28 white candles and 22 black candles for a net of 6 white candles.

A long upper shadow occurred. This is typically a bearish signal (particularly when it occurs near a high price level, at resistance level, or when the security is overbought).

A rising window occurred (where the top of the previous shadow is below the bottom of the current shadow). This usually implies a continuation of a bullish trend. There have been 6 rising windows in the last 50 candles–this makes the current rising window even more 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 64.4741. This is not an overbought or oversold reading. The last signal was a sell 1 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 65.30. 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 21 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 130.This is an overbought reading. However, a signal isn’t generated until the indicator crosses below 100. The last signal was a sell 1 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 3 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 2.470 at 172.070. Volume was 22% below average (neutral) and Bollinger Bands were 38% narrower than normal.

Open High Low Close Volume___
171.600 174.300 171.580 172.070 18,883,984

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

Moving Averages: 10-period 50-period 200-period
Close: 167.26 155.37 165.62
Volatility: 28 42 49
Volume: 16,768,311 20,766,956 24,248,282

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 up today (bullish) 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 3.9% 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 4 periods.

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