Facebook, Inc. (NASDAQ:FB) will no longer allow Huawei to pre-install its core app, Messenger, Instagram, or WhatsApp on its smartphones

Facebook, Inc. (NASDAQ:FB) will no longer allow Huawei to pre-install its core app, Messenger, Instagram, or WhatsApp on its smartphones

Facebook, Inc. (NASDAQ:FB) will no longer allow Huawei to pre-install its core app, Messenger, Instagram, or WhatsApp on its smartphones

Facebook (NASDAQ: FB) will no longer allow Huawei to pre-install its core app, Messenger, Instagram, or WhatsApp on its smartphones, according to Reuters. The decision comes after several other companies — including Intel , Qualcomm , and ARM Holdings — cut ties with Huawei amid the Trump Administration’s escalating war against the Chinese tech giant.

In mid-May, the Trump Administration placed Huawei on an “entity list” of companies that are barred from buying American technologies without the government’s approval. The ban on Huawei was suspended for 90 days to allow companies to fulfill security and contractual obligations, but Huawei could still be permanently cut off from American technologies if a trade deal isn’t reached.

Facebook’s decision to stop Huawei from pre-installing its apps initially sounds important, but it’s ultimately toothless when you consider a few key issues.

A symbolic move with no real bite
Facebook isn’t blocking Huawei users from using its apps, it’s only preventing Huawei from pre-installing the apps on new phones, which means that customers simply need to install the apps from an app store like Alphabet ‘s (NASDAQ: GOOG) (NASDAQ: GOOGL) Google Play or Huawei’s AppGallery.

Google plans to cut new Huawei devices off from Google Play and other Google services when the 90-day extension ends in mid August. However, Huawei users can still download and install Facebook’s flagship apps from the AppGallery, which is pre-installed on all Huawei devices.

Huawei controls 23% of the global smartphone market, according to IDC. But its biggest market is China, where it’s the top player with a 28% market share, according to Counterpoint Research. Yet Facebook, Messenger, Instagram, and WhatsApp are all blocked in China — so the impact there is non-existent.

Meanwhile, users in Huawei’s other top markets, like Europe and Latin America, simply need to install Facebook’s apps on new phones. Therefore, Reuters’ claim that Facebook’s decision “dampens the sales outlook” for Huawei greatly exaggerates the impact of a move that really has no bite.

Overall, the bias in prices is: Downwards.

The projected upper bound is: 185.43.

The projected lower bound is: 164.58.

The projected closing price is: 175.01.

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 26 white candles and 23 black candles for a net of 3 white candles.

A doji star occurred (where a doji gaps above or below the previous candle). This often signals a reversal with confirmation occurring on the next bar.

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).

Three white candles occurred in the last three days. Although these candles were not big enough to create three white soldiers, the steady upward pattern is 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 66.7191. 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 44.91. 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 4 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 -14. 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 23 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed up 1.470 at 174.820. Volume was 17% below average (neutral) and Bollinger Bands were 20% wider than normal.

Open High Low Close Volume___
174.750 177.860 173.800 174.820 14,767,918

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

Moving Averages: 10-period 50-period 200-period
Close: 174.33 181.37 161.28
Volatility: 56 37 42
Volume: 21,744,286 16,969,108 21,986,006

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 8.4% above 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 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 15 periods.

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