Tech giants like Amazon.com (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) have deserved a great deal of the criticism they’ve garnered of late for prying a little too deeply into users’ digital lives. Neither company, however, has experienced the kind of scrutiny that Facebook (NASDAQ:FB) has recently. FB stock is down 40% from July’s high, ultimately because years of its aggressive nosiness have finally come home to roost.
Facebook stock is positioned to continue sinking to new lows, though, in light of this weekend’s development. The U.K.’s Parliamentary Digital, Culture, Media and Sport Committee (DCMS) has seized confidential documents that may further describe the company’s privacy controls and personal data policies. The committee forcibly obtained the documents from a former Facebook partner.
The documents could put even more bearish pressure on the already-beleaguered FB stock.
More of the Same for FB
This development comes in the wake of a major expose about Facebook’s policies towards its partners in March of this year. That’s when political data analytics firm Cambridge Analytica was thrust into the spotlight by The New York Times, which detailed the shocking invasiveness of Cambridge’s efforts to obtain personal information about Facebook’s users.
Such concerns had been voiced before, but this scandal was effectively a “smoking gun.”
The development prompted regulatory inquiries, in the United States and elsewhere. In the U.S., FB CEO Mark Zuckerberg was grilled by a Senate committee charged with determining the nature of Facebook’s so-called “data scraping.” But, because senators were not entirely aware of how Facebook works, the questioning was benign and led to very little change.
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 155.90.
The projected upper bound is: 144.30.
The projected lower bound is: 124.68.
The projected closing price is: 134.49.
A black body occurred (because prices closed lower 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 25 white candles and 25 black 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 62.3894. 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 37.83. 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 3 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 -61. This is not a topping or bottoming area. The last signal was a buy 1 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 10 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -1.380 at 135.000. Volume was 27% below average (neutral) and Bollinger Bands were 1% wider than normal.
Open High Low Close Volume___
135.750 136.613 133.710 135.000 20,750,318
Short Term: Neutral
Intermediate Term: Bearish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 137.17 151.75 173.44
Volatility: 49 42 46
Volume: 27,345,294 26,028,666 27,627,930
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 22.2% below its 200-period moving average and is in an downward trend. Volatility is relatively normal 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 bearish on FB.O and have had this outlook for the last 46 periods.
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