Getting into crypto could hamper Facebook, Inc. (NASDAQ:FB) stock

Getting into crypto could hamper Facebook, Inc. (NASDAQ:FB) stock

Getting into crypto could hamper Facebook, Inc. (NASDAQ:FB) stock

One would think, given the amount of regulatory scrutiny Facebook (NASDAQ:FB) faced of late, CEO Mark Zuckerberg would lay low for a while even if only to protect Facebook stock.

One would be wrong in making such an assumption, however. Even as antitrust investigations of it and Apple (NASDAQ:AAPL) get going, Facebook is poking the proverbial bear. This only a few weeks after European regulators forced the social networking giant to revise its privacy policy. Last week the company announced it was planning becoming part of a relatively exclusive cryptocurrency network known as Libra.

Visa (NYSE:V) and Uber Technologies (NYSE:UBER) are founding members of the blockchain-powered crypto network, though it’s difficult to suggest Facebook isn’t best positioned to make Libra a mainstream alternative to actual government-issued currency.

Facebook Stock and Regulators

If all goes as planned, Facebook’s WhatsApp, Messenger as well as Facebook itself will be able to facilitate Libra-based transactions by the first half of next year.

Facebook’s blockchain Vice President David Marcus explained: “If more commerce happens, then more small businesses will sell more on and off platform, and they’ll want to buy more ads on the platform so it will be good for our ads business.”

He’s not wrong, but, any alternative to the use of government-issued money as a means of conveying value raises eyebrows in Washington D.C. It took Democratic Representative Maxine Waters, chair of the House Financial Services Committee, just hours to request Facebook suspend its development of Libra. Hearings on the matter are already in the works.

Overall, the bias in prices is: Upwards.

By the way, prices are vulnerable to a correction towards 181.51.

The projected upper bound is: 200.06.

The projected lower bound is: 178.01.

The projected closing price is: 189.03.

Candlesticks

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 27 white candles and 23 black candles for a net of 4 white 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 (which appears to be the case with FACEBOOK INC A). It then signifies that the momentum may be shifting from the bulls to the bears.

If the engulfing bearish pattern occurs during a downtrend, 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 64.5778. This is not an overbought or oversold reading. The last signal was a sell 4 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 58.21. 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 15 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 71. This is not a topping or bottoming area. The last signal was a sell 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 buy 9 period(s) ago.

Rex Takasugi – TD Profile

FACEBOOK INC A closed down -3.760 at 188.840. Volume was 4% below average (neutral) and Bollinger Bands were 55% wider than normal.

Open High Low Close Volume___
192.880 193.140 188.130 188.840 16,750,309

Technical Outlook
Short Term: Overbought
Intermediate Term: Bullish
Long Term: Bullish

Moving Averages: 10-period     50-period     200-period
Close: 186.09 183.71 161.95
Volatility: 33 39 42
Volume: 20,482,154 18,131,550 21,851,836

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 16.6% above its 200-period moving average and is in an upward 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 bullish on FB.O and have had this outlook for the last 3 periods.

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