Sentiment towards Facebook, Inc. (NASDAQ:FB) stock has completely turned around for 2019
Last year was downright horrible for Facebook (NASDAQ: FB ) stock. The company’s shares significantly lagged those of other big tech names like Microsoft (NASDAQ: MSFT ), Amazon.com (NASDAQ: AMZN ) and Alphabet (NASDAQ: GOOG , NASDAQ: GOOGL ).
But in the new year, sentiment towards Facebook stock has completely turned around. So far, FB stock is up about 8% in 2019.
But next Wednesday after the market closes, when the company will report its fourth-quarter results, we’ll get a test of the strength of the rally of FB stock.
So what is Wall Street looking for? Well, analysts on average expect Facebook’s revenues to come in at $16.41 billion, up over 26% on a year-over-basis. But during the fourth quarter of 2017, the company’s revenues spiked by 47%, so analysts think that its top-line growth sharply decelerated.
The company’s adjusted earnings are expected to be $2.17 per share of FB stock, off about 1% from the same period a year earlier.
Since Facebook’s base is so large, it’s having a tougher time generating growth. It’s also important to note that FB is undergoing a major transformation, as CEO Mark Zuckerberg has indicated that 2019 will be a year of “investment.”‘
One headwind for FB stock is its new strategy of being less reliant on the newsfeed and instead focusing on offerings like Stories. While this is probably good for users, the transition will hamper monetization, at least in the near-term.
Overall, the bias in prices is: Downwards.
The projected upper bound is: 155.11.
The projected lower bound is: 133.20.
The projected closing price is: 144.16.
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 7 white candles and 3 black candles for a net of 4 white candles. During the past 50 bars, there have been 29 white candles and 21 black candles for a net of 8 white 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 42.9843. 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 53.16. 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 40 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 28. This is not a topping or bottoming area. The last signal was a sell 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 buy 13 period(s) ago.
Rex Takasugi – TD Profile
FACEBOOK INC A closed down -3.270 at 144.300. Volume was 23% below average (neutral) and Bollinger Bands were 38% wider than normal.
Open High Low Close Volume___
148.280 148.800 143.055 144.300 20,098,416
Short Term: Neutral
Intermediate Term: Bullish
Long Term: Bearish
Moving Averages: 10-period 50-period 200-period
Close: 146.43 139.57 167.32
Volatility: 26 51 48
Volume: 20,314,834 26,028,810 25,291,100
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 13.8% below its 200-period moving average and is in an upward trend. Volatility is extremely low when compared to the average volatility over the last 10 periods. There is a good possibility that there will be an increase in volatility along with sharp price fluctuations in the near future. Our volume indicators reflect moderate flows of volume into FB.O (mildly bullish). Our trend forecasting oscillators are currently bullish on FB.O and have had this outlook for the last 11 periods.
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