Help us make better tools for you!. Read more (Published: 2017-01-12)

FB - Facebook Fri 13'th Jan 2017

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Strong Buy Candidate

Score: 5.51

#293 of 5193
Trend:
MV Long:
MV Short:
Pivot:
Volume:
MACD:
Accuracy: 92.00%
Risk: Medium
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Stock analysis for Fri 13'th Jan 2017 (Updated daily)

Buy candidate since 2017-01-11

Gain 1.78%

Facebook Stock Analysis


Facebook gained 1.34% in the last trading day rising from, USD 126.64 to USD 128.34. , and has now gained 4 days in a row. It will be exciting to see whether it manages to continue gaining or take a minor break for the next few days. The price has risen in 8 of the last 10 days days and is up by 10.31% over the past 2 weeks. Volume also increased in the last day along with the price, which is a positive technical sign, and ,in total, 6.28 million more shares traded than the day before. In total there were 24.84 million shares were bought and sold for approximately USD 3.19 billion.

Trend

Facebook has broken the wide and weak falling short-term trend up. Firstly a slower falling rate is indicated, but this may very well be an early signal of a trend shift. On the reaction there will be support on the roof on the current trend broken, which is USD 125.00, a level that may pose a second chance to hit a runner. According to fan-theory USD 140.98 will be the next possible trendtop level and thereby pose a resistancelevel which may not be broken on the first attempt.

Signals

Only positive signals in the chart today. Facebook holds buy signals from both short- and long-term moving averages. In addition, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down there will be some support from the lines at USD 124.91 and USD 119.71. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Friday December 30, 2016, which indicates further gains until a new top pivot has been found. Volume is rising along with the price. This is considered to be a good technical signal.

The stock had a Golden Star Signal* on Tuesday June 28, 2016 in the mediumterm chart.

* Golden Star Signal* is when the short-term moving average, the long-term moving average, and priceline meet in a special combination. This combination is very rare and often followed by long and strong gains for the stock in question.

Relative Strength Index (RSI)

The stock holds a RSI14 at 80 and is currently being overbought on RSI. This does not have to be a sales signal as many stocks may go both long and hard while being overbought on the RSI. It is therefore important to evaluate the history of the share as it may tell you something about the RSI-sensitiveness.

Support & Resistance

On the downside the stock finds support just below today's level from accumulated volume at USD 120.80 and USD 120.00 On the upside the stock meets some resistance just above today's level from accumulated volume at USD 129.50, USD 131.29 and USD 132.07.

There is natural risk involved when a stock is testing a support level, as if this is broken the stock may fall to the next support level. In this case Facebook finds support just below today's level at 120.80. If this is broken the next support from accumulated volume will be at 120.00 and 115.08. The stock is about to test the resistance from accumulated volume at USD 129.50 and this may cause the stock to take a minor break or get into a more sideways move for a few days.

Risk

This stock is usually traded at good volume, and with minor daily changes the risk is considered to be low. During the last day the stock moved USD 1.90 between high and low, and this equals 1.49%. For the last week, the stock has had a daily average volatility of 2.17%.

The stock is extremely overbought on RSI14 (80). Normally this will pose a good selling opportunity, but since the stock has broken the trend up the chance for a major correction due to high RSI is very small as the stock will find support at the trend broken.

Our recommended stoploss: USD 127.89 (-0.35%) ( Criterias: risk and break of trend)

Evaluation

Facebook holds several positive signals and the break up from the weak falling trend indicates a possible shift of trend as well. The trend doesn't have to go from falling to rising, it may as well go horizontal or even just decrease the earlier fall rate, but we find the risk-reward to be attractive and expect the stock to perform very well in the short term period.

Strong Buy Candidate


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