Facebook (NASDAQ:FB) Not-so-happy Days

Facebook (NASDAQ:FB) Not-so-happy Days

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

Facebook
Ticker: NASDAQ:FB
Price: $267.67

Facebook News

The stock market, until recently, seemed to have miraculously rebounded and regained all of the losses from the pandemic lows and remarkably reached new highs. The tech sector, including Amazon, Apple, Google, Microsoft, Zoom, Facebook and other work-from-home stocks, have been on fire. 

Recent trading activity reflects the bloom is off the rose for the stock market. Earnings are not strong enough to support their lofty prices. There has been much written about wealth inequality, as folks like Amazon CEO Jeff Bezos made billions more during the pandemic, while the average person is just trying to hang on. 

The wealth effect serves a purpose. For the people who own stocks—which include everyday people who have 401(k), children’s college tuitions and corporate retirement plans—along with the roughly 10% of Americans who own securities and real estate, the increase in value made them feel more confident. This led to spending more money, which stimulates the economy and ultimately creates new jobs, as companies benefit from the new business. Unfortunately, as stocks fall or maybe even crash, people will substantially curtail their spending habits. This will slowdown the economy, make it difficult for businesses to survive and the cycle of layoffs will continue. 

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: Upwards.

By the way, prices are vulnerable to a correction towards 261.00.

The projected upper bound is: 288.91.

The projected lower bound is: 246.64.

The projected closing price is: 267.78.

Candlesticks

A big black candle occurred. This is bearish, as prices closed significantly lower than they opened. If the candle appears when prices are “high,” it may be the first sign of a top. If it occurs when prices are confronting an overhead resistance area (e.g., a moving average, trendline, or price resistance level), the long black candle adds credibility to the resistance. Similarly, if the candle appears as prices break below a support area, the long black candle confirms the failure of the support area.
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 20 white candles and 30 black candles for a net of 10 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 46.1224. This is not an overbought or oversold reading. The last signal was a sell 0 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 48.65. 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 38 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 -22. This is not a topping or bottoming area. The last signal was a sell 2 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 buy 20 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -15.620 at 267.670. Volume was 5% below average (neutral) and Bollinger Bands were 21% narrower than normal.

Open     High     Low     Close     Volume
278.790  278.790  267.260 267.670   23,121,808
Technical Outlook
Short Term:        Neutral
Intermediate Term: Bullish
Long Term:         Bullish
Moving Averages: 10-period     50-period     200-period
Close:           273.13        270.47        226.25
Volatility:      54            49            58
Volume:          18,837,476    22,649,306    23,792,786

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 18.3% above its 200-period moving average and is in an upward 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 bullish on FB.O and have had this outlook for the last 5 periods.

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