Facebook, Inc. (NASDAQ:FB) Struggles Could Be Good News
Facebook (NASDAQ:FB) has faced a lot of scandals surrounding its data and advertisements over the past year. Not only has fake news put the company under the microscope for who it sold ads to, but the Cambridge Analytica scandal also uncovered the company’s poor controls when it came to protecting user data.
All of this has put Facebook under a lot of pressure to change its ways, and although it has been promising to do so, investors still seem hesitant to buy the stock. Over the past 12 months, the stock is still down around 7%, and while it has rallied 24% since the start of the year, as have many other stocks, at around $160 it is still a long ways away from before it began its free fall, when it trading at well over $200 a share.
Facebook continues to bring in strong revenue and profit growth, but the reluctance for investors to reward the company for doing so suggests that they are taking the data privacy issues seriously and that the stock might simply be too much of a risk.
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 155.78.
The projected upper bound is: 174.53.
The projected lower bound is: 150.05.
The projected closing price is: 162.29.
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 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 30.5902. This is not an overbought or oversold reading. The last signal was a buy 3 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 56.70. 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 10 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 -93. This is not a topping or bottoming area. The last signal was a buy 0 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 6 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed up 1.850 at 161.890. Volume was 36% below average (neutral) and Bollinger Bands were 27% wider than normal.
Open High Low Close Volume___
160.580 162.410 160.310 161.890 15,858,468
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 163.55 148.81 166.55
Volatility: 14 54 49
Volume: 14,171,197 24,025,920 24,233,312
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 2.8% 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 32 periods.