Facebook (NASDAQ:FB) is as Cheap as in 2019 on a PE Ratio!

Facebook (NASDAQ:FB) is as Cheap as in 2019 on a PE Ratio!

$FB #Facebook #SocialMedia #USA #Nasdaq #Stocks #Trading #Markets

Facebook
Ticker: NASDAQ:FB
Price: $249.02

Facebook Outlook

This company is firing on all cylinders. Need proof? Even after the June dip, the stock rallied 50%. This week we came into a very red Monday on Wall Street and the headlines were heavy with virus fears. In reality it’s just normal price action because stocks cannot rally for ever without a break.

On the way up investors don’t panic, yet on the way down it’s like the end of the world. FB has a reasonable price-earnings ratio and a low price to sales. Very little froth built into its price now. There could be more room lower but not likely to be a massive crash. There will be buyers along the way

Technically this dip brings us back to prior pivot zones. Those who missed the rally the first time have an opportunity to jump on board now. The area around $240 has been in hard contention since May, so the bulls will fight for it. Below that there is even stronger support. Going into $220, Facebook stock’s volume profile says it has a lot of fans.

The bottom is a process more often than a hard line. This stock should at least be on the shopping list.

Business Summary

Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces.

The Company’s products include Facebook, Instagram, Messenger, WhatsApp and Oculus.

Facebook enables people to connect, share, discover and communicate with each other on mobile devices and personal computers.

Instagram enables people to take photos or videos, customize them with filter effects, and share them with friends and followers in a photo feed or send them directly to friends.

Messenger allows communicating with people and businesses alike across a range of platforms and devices.

WhatsApp Messenger is a messaging application that is used by people around the world and is available on a range of mobile platforms.

Its Oculus virtual reality technology and content platform offers products that allow people to enter an interactive environment to play games, consume content and connect with others.

Price Performance

Relative Valuation

Technical Indicators

Overall, the bias in prices is: Downwards.

The projected upper bound is: 269.91.

The projected lower bound is: 228.50.

The projected closing price is: 249.21.

Candlesticks

A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 3 white candles and 7 black candles for a net of 4 black candles. During the past 50 bars, there have been 21 white candles and 29 black candles for a net of 8 black candles.

An engulfing bearish line occurred (where a black candle’s real body completely contains the previous white candle’s real body). The engulfing bearish pattern is bearish during an uptrend. It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend (which appears to be the case with FACEBOOK INC A), it may be a last engulfing bottom which indicates a bullish reversal. The test to see if this is the case is if the next candle closes above the bottom the current (black) candle’s real body.

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 25.6737. This is not an overbought or oversold reading. The last signal was a buy 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 38.63. 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 13 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 -97. This is not a topping or bottoming area. The last signal was a buy 0 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 12 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -5.730 at 249.020. Volume was 25% below average (neutral) and Bollinger Bands were 80% wider than normal.

Open     High     Low      Close     Volume
255.260  257.992  248.150  249.020   19,641,266
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bearish
Long Term:         Bullish
Moving Averages: 10-period     50-period      200-period
Close:           259.61        261.12         218.77
Volatility:      38            49             57
Volume:          24,956,446    24,849,846     23,156,318

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 13.8% above its 200-period moving average and is in an downward 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 bearish on FB.O and have had this outlook for the last 6 periods.

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