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6 months ago
Facebook looks Bullet Proof | $FB
Despite everything negative that that has been thrown at Facebook, Inc. (NASDAQ: FB) in 2019; the company continues to reward shareholders, users and advertisers. The media, top financial analysts, and even the POTUS himself, have been judge and jury on Mr. Zuckerberg’s handling of news and personal information.
The dislike for Facebook by the mainstream media is plain and simple, as it threatens their dominance and their ability to alter our thought processes and opinions towards certain matters. On any given day, we can switch news channels to see the same information being portrayed in polar opposite ways, in particular, when it comes to politics. FB has no bias and it is up to the social network’s users to determine what is false and what is true. FB upholds the right to free speech, and it makes money in the process.
Although FB has had to increase expenditure greatly in 2019, it continues to be a cash cow with amazing operating margins and very limited competition. On the flip side, there has been a recent decline in Twitter’s stock price; after it announced a clear on political advertising. It is a clear sign that investors do not care about the content, but only that the potential revenues that it creates. FB looks set to have a massive run in 2020, on the heels of increased political spending, since it has a very limited choice of media outlets to target prospective voters.
The Stock appears to be on the Verge of a Massive Breakout, so Let’s Look at the Charts for Some Technical Hints to Where $FB could Go Next:
The Daily Chart is Showing Us that a Breakout is Looking Very Likely in the Near Future, But it Must Also be Taken into Consideration that a Rejection at this Price-level could Lead to a Major Double Top Formation:
Technical Indicators to Consider from the Daily Chart are:
- RSI is in a very strong uptrend, with room to run much higher on a breakout.
- On-Balance Volume also has room to run before reaching historical highs.
- Momentum is signaling strength and ticking higher after consolidating.
- Moving averages are in alignment and rising providing continued support.
- Volume needs a significant increase and will be a very good indicator to consider taking a long position.
Targets to Consider:
Short-term: $244 – to first Fibonacci resistance
Medium-term: $280 – to first area of confluence between Fibonacci expansion and extension levels.
Long-term: $310-$315 – appears to be a 1-2-1 Fibonacci expansion target.
As long as the stock markets remain overall strong, then FB could see a break above $221-$223. This should be a safe position to ladder into a long position and possibly expect a back test of old resistance as support.