Best of the Week
Most Popular
1. TESLA! Cathy Wood ARK Funds Bubble BURSTS! - 12th May 21
2.Stock Market Entering Early Summer Correction Trend Forecast - 10th May 21
3.GOLD GDX, HUI Stocks - Will Paradise Turn into a Dystopia? - 11th May 21
4.Crypto Bubble Bursts! Nicehash Suspends Coinbase Withdrawals, Bitcoin, Ethereum Bear Market Begins - 16th May 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.Cathy Wood Ark Invest Funds Bubble BURSTS! ARKK, ARKG, Tesla Entering Severe Bear Market - 13th May 21
7.Stock Market - Should You Be In Cash Right Now? - 17th May 21
8.Gold to Benefit from Mounting US Debt Pile - 14th May 21
9.Coronavius Covid-19 in Italy in August 2019! - 13th May 21
10.How to Invest in HIGH RISK Tech Stocks for 2021 and Beyond - Part 2 of 2 - 18th May 21
Last 7 days
Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
Will Biden’s Neo-Populist Economic Doctrine Support Gold? - 25th Sep 21
Markets Deflationary Winds Howling - 25th Sep 21
Crude Oil Price Piercing the Sky: Where Will We See the Black Gold by Xmas? - 25th Sep 21
Cryptocurrency policy choices and consequences - 25th Sep 21
The Next Emma Raducanu UK Tennis Star Pleasing the Crowds at Millhouses Park Sheffield - 25th Sep 21
Stock Market Rescued by the Fed Again? - 24th Sep 21
Are Amazon Best Cheap Memory Foam Mattresses Any good? Bedzonline £69 4ft Small Double ECO Example - 24th Sep 21
Evergrande not a Minsky Moment - 24th Sep 21
UK Energy Firms Scamming Customers Out of Their Best Fixed Rate Gas Tariffs - 23rd Sep 21
Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Should School Children be Jabbed with Pfizer Covid-19 Vaccine To Foster Herd Immunity? - UK - 23rd Sep 21
HOW TO SAVE MONEY ON CAR INSURANCE - 23rd Sep 21
Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
Trading Crude Oil ETFs in Foreign Currencies: What to Focus On - 22nd Sep 21
URGENT - Crypto-trader event - 'Bitcoin... back to $65,000?' - 22nd Sep 21
Stock Market Time to Buy the Dip? - 22nd Sep 21
US Dollar Bears Are Fresh Out of Honey Pots - 22nd Sep 21
MetaTrader 5 Features Every Trader Should Know - 22nd Sep 21
Evergrande China's Lehman's Moment, Tip of the Ice Berg in Financial Crisis 2.0 - 21st Sep 21
The Fed Is Playing The Biggest Game Of Chicken In History - 21st Sep 21
Focus on Stock Market Short-term Cycle - 21st Sep 21
Lands End Cornwall In VR360 - UK Holidays, Staycations - 21st Sep 21
Stock Market FOMO Hits September CRASH Brick Wall - Dow Trend Forecast 2021 Review - 20th Sep 21
Two Huge, Overlooked Drains on Global Silver Supplies - 20th Sep 21
Gold gets hammered but Copper fails to seize the moment - 20th Sep 21
New arms race and nuclear risks could spell End to the Asian Century - 20th Sep 21
Stock Market FOMO Hits September Brick Wall - Dow Trend Forecast 2021 Review - 19th Sep 21
Dow Forecasting Neural Nets, Crossing the Rubicon With Three High Risk Chinese Tech Stocks - 18th Sep 21
If Post-1971 Monetary System Is Bad, Why Isn’t Gold Higher? - 18th Sep 21
Stock Market Shaking Off the Taper Blues - 18th Sep 21
So... This Happened! One Crypto Goes From "Little-Known" -to- "Top 10" in 6 Weeks - 18th Sep 21
Why a Financial Markets "Panic" May Be Just Around the Corner - 18th Sep 21
An Update on the End of College… and a New Way to Profit - 16th Sep 21
What Kind of Support and Services Can Your Accountant Provide? Your Main Questions Answered - 16th Sep 21
Consistent performance makes waste a good place to buy stocks - 16th Sep 21
Dow Stock Market Trend Forecasting Neural Nets Pattern Recognition - 15th Sep 21
Eurozone Impact on Gold: The ECB and the Phantom Taper - 15th Sep 21
Fed To Taper into Weakening Economy - 15th Sep 21
Gold Miners: Last of the Summer Wine - 15th Sep 21
How does product development affect a company’s market value? - 15th Sep 21
Types of Investment Property to Become Familiar with - 15th Sep 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Facebook Stock Price Forecast

Companies / Company Chart Analysis May 24, 2015 - 10:55 AM GMT

By: Austin_Galt

Companies

Facebook Inc (FB) is a social networking website company which is listed on the NASDAQ with a market capitalisation of around $225billion. Price last traded at $80.54. To learn more about the company, please visit its website at www.facebook.com

Let’s analyse the technicals beginning with the monthly chart.


FB MONTHLY CHART

We can see price has been in an impressive bull market from its low in 2012 at $17.55 to its recent high at $86.07. That’s a not-to-be-sneezed-at five bagger.

However, this bull trend is looking long in the tooth if the lower indicators are anything to go by.

The RSI shows a triple bearish divergence at the recent high.

The Stochastic indicator has just made a bearish crossover after putting in some bearish divergences.

The Momentum indicator shows momentum has fallen off a cliff over the past year. The game appears to be nearly up if it isn’t already!

The PSAR indicator still has a bullish bias with the dots underneath price but this is looking shaky with price edging ever closer to this support.

Personally, I think the bull trend is done and a new bear trend is in its infancy. If I am wrong then I would think only marginally higher.

So, how low do I expect price to trade in this new bear trend?

I have drawn a horizontal line which denotes the previous swing high set on its first day of trading in May 2012 at $45. This level should provide support although I expect price to nudge a bit lower as it gives this support level a good test.

I have added Fibonacci retracement levels of the whole move up and the 61.8% level is just below the previous swing high so that is where I am targeting the final pullback low to occur. This level stands at $43.72. Price may nudge a touch lower as it attempts to fake out the technical analysts that follow that level so closely.

Also, I have drawn a Fibonacci Fan and the 76.4% angle looks set to be just under this area in mid 2016 and I expect this angle to provide solid support.

Let’s move on to the weekly chart.

FB WEEKLY CHART

Once again, the lower indicators are looking very bearish with the RSI showing a quadruple bearish divergence at the recent high and the MACD indicator a quintuple bearish divergence no less.

I have drawn a Fibonacci Fan which shows price making its way through each angle as the bull trend progressed. Price has recently broken below the 61.8% angle and there is now a big drop to the next 76.4% angle.

I have drawn an uptrend line along bottoms which represent support and breaking down below there now would look very bearish in my opinion.

The PSAR indicator has a bearish bias with the dots above price and while price may go up to test that resistance I suspect it will hold and a big downtrend will follow. The dots currently stand at $84.90 and will be around $84.50 next week.

Let’s wrap it up by looking in close at the daily chart.

FB DAILY CHART

The lower indicators on the daily chart offer some relief to the bulls. The Stochastic and MACD indicators both appear to have a bit more upside left in them.

The PSAR indicator has a bullish bias and I expect some follow through to the upside from here.

The Bollinger Bands show price made it back up to the upper band. While it is possible for price to turn back down here and head to the lower band I think one last move that clings to the upper band is in store.

The horizontal line denotes a minor swing low and we can see price clipped that level on its recent run down. So that may well turn out to be the first lower low and will need to be confirmed by a lower high.

I have added Fibonacci retracement level of the recent move down and the first rally in a new bear market often makes a deep retracement. Therefore, I am targeting the 76.4% level at $83.88 to bring in the lower high. The 88.6% level at $85.01 is worth considering but may be a tad too high.

Summing up, I believe the bull trend is done and price is tracing out its first steps in a new bear market that will see around 50% lopped off the price before the next big bull trend commences.

Disclosure – I have no financial interest in FB.

By Austin Galt

www.thevoodooanalyst.com 

Austin Galt is The Voodoo Analyst. I have studied charts for over 20 years and am currently a private trader. Several years ago I worked as a licensed advisor with a well known Australian stock broker. While there was an abundance of fundamental analysts, there seemed to be a dearth of technical analysts. My aim here is to provide my view of technical analysis that is both intriguing and misunderstood by many. I like to refer to it as the black magic of stock market analysis.

Email - info@thevoodooanalyst.com 

My website is www.thevoodooanalyst.com 

© 2015 Copyright  The Voodoo Analyst - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Austin Galt Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in