Facebook, Inc. (NASDAQ:FB) time to buy?

Facebook, Inc. (NASDAQ:FB) time to buy?

Facebook, Inc. (NASDAQ:FB) time to buy?

Every day, Wall Street analysts upgrade some stocks, downgrade others, and “initiate coverage” on a few more. But do these analysts even know what they’re talking about? Today, we’re taking one high-profile Wall Street pick and putting it under the microscope…

Decelerating revenue growth, shrinking margins, and surging expenses: Facebook’s (NASDAQ:FB) Q2 earnings results were not for the faint of heart. Three months after that report lopped $120 billion off the social network’s market cap, however, one analyst is stepping up to call Facebook stock a buy today.

Upgrading Facebook

Facebook’s last earnings report came out on July 25. Its next report will arrive after close of trading on Oct. 30.

One analyst isn’t waiting to hear the news, however, before rushing out with a buy rating. This morning, NYC-based Rosenblatt Securities announced that it’s initiating coverage of Facebook with a buy rating and a $213 price target that implies Facebook shares will soon be trading back above what they cost before July’s collapse — and could deliver new investors as much as a 36.5% profit off today’s prices.

Overall, the bias in prices is: Downwards.

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

By the way, prices are vulnerable to a correction towards 170.04.

The projected upper bound is: 165.70.

The projected lower bound is: 150.78.

The projected closing price is: 158.24.

Candlesticks

A white body occurred (because prices closed higher than they opened).
During the past 10 bars, there have been 6 white candles and 4 black candles for a net of 2 white candles. During the past 50 bars, there have been 24 white candles and 26 black candles for a net of 2 black candles.

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 55.9711. This is not an overbought or oversold reading. The last signal was a buy 5 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 45.59. 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 26 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 -20. This is not a topping or bottoming area. The last signal was a buy 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 sell 7 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 5.260 at 158.780. Volume was 25% below average (neutral) and Bollinger Bands were 26% narrower than normal.

Open High Low Close Volume___
155.400 159.460 155.010 158.780 19,180,096

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

Moving Averages: 10-period 50-period 200-period
Close: 156.45 167.61 179.04
Volatility: 39 29 46
Volume: 24,333,948 24,286,844 27,780,388

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 is currently 11.3% below its 200-period moving average and is in an downward 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 moderate flows of volume out of FB.O (mildly bearish). Our trend forecasting oscillators are currently bearish on FB.O and have had this outlook for the last 17 periods.

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