Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
US House Prices Trend Forecast 2024 to 2026 - 11th Oct 24
US Housing Market Analysis - Immigration Drives House Prices Higher - 30th Sep 24
Stock Market October Correction - 30th Sep 24
The Folly of Tariffs and Trade Wars - 30th Sep 24
Gold: 5 principles to help you stay ahead of price turns - 30th Sep 24
The Everything Rally will Spark multi year Bull Market - 30th Sep 24
US FIXED MORTGAGES LIMITING SUPPLY - 23rd Sep 24
US Housing Market Free Equity - 23rd Sep 24
US Rate Cut FOMO In Stock Market Correction Window - 22nd Sep 24
US State Demographics - 22nd Sep 24
Gold and Silver Shine as the Fed Cuts Rates: What’s Next? - 22nd Sep 24
Stock Market Sentiment Speaks:Nothing Can Topple This Market - 22nd Sep 24
US Population Growth Rate - 17th Sep 24
Are Stocks Overheating? - 17th Sep 24
Sentiment Speaks: Silver Is At A Major Turning Point - 17th Sep 24
If The Stock Market Turn Quickly, How Bad Can Things Get? - 17th Sep 24
IMMIGRATION DRIVES HOUSE PRICES HIGHER - 12th Sep 24
Global Debt Bubble - 12th Sep 24
Gold’s Outlook CPI Data - 12th Sep 24
RECESSION When Yield Curve Uninverts - 8th Sep 24
Sentiment Speaks: Silver Is Set Up To Shine - 8th Sep 24
Precious Metals Shine in August: Gold and Silver Surge Ahead - 8th Sep 24
Gold’s Demand Comeback - 8th Sep 24
Gold’s Quick Reversal and Copper’s Major Indications - 8th Sep 24
GLOBAL WARMING Housing Market Consequences Right Now - 6th Sep 24
Crude Oil’s Sign for Gold Investors - 6th Sep 24
Stocks Face Uncertainty Following Sell-Off- 6th Sep 24
GOLD WILL CONTINUE TO OUTPERFORM MINING SHARES - 6th Sep 24
AI Stocks Portfolio and Bitcoin September 2024 - 3rd Sep 24
2024 = 1984 - AI Equals Loss of Agency - 30th Aug 24
UBI - Universal Billionaire Income - 30th Aug 24
US COUNTING DOWN TO CRISIS, CATASTROPHE AND COLLAPSE - 30th Aug 24
GBP/USD Uptrend: What’s Next for the Pair? - 30th Aug 24
The Post-2020 History of the 10-2 US Treasury Yield Curve - 30th Aug 24
Stocks Likely to Extend Consolidation: Topping Pattern Forming? - 30th Aug 24
Why Stock-Market Success Is Usually Only Temporary - 30th Aug 24
The Consequences of AI - 24th Aug 24
Can Greedy Politicians Really Stop Price Inflation With a "Price Gouging" Ban? - 24th Aug 24
Why Alien Intelligence Cannot Predict the Future - 23rd Aug 24
Stock Market Surefire Way to Go Broke - 23rd Aug 24
RIP Google Search - 23rd Aug 24
What happened to the Fed’s Gold? - 23rd Aug 24
US Dollar Reserves Have Dropped By 14 Percent Since 2002 - 23rd Aug 24
Will Electric Vehicles Be the Killer App for Silver? - 23rd Aug 24
EUR/USD Update: Strong Uptrend and Key Levels to Watch - 23rd Aug 24
Gold Mid-Tier Mining Stocks Fundamentals - 23rd Aug 24
My GCSE Exam Results Day Shock! 2024 - 23rd Aug 24

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

© 2005-2022 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