COMPANY NAME – FACEBOOK
TICKER – FB
MY OPINION (JUST MY THOUGHTS, NOT ADVICE) – Wait, for now. I think the bottom has yet to come.
STRATEGY USED – I’m on the sidelines as of this post, but may enter soon, via selling puts or selling a put spread.
Facebook Stock Analysis
Facebook Inc took a nose dive off of its 52 week high of $218.62 after its Q2 2018 earnings report. Forward guidance suggested a slow in growth, and investors promptly panicked.
The thing is, a conservative guidance is a sign of a realistic management, IMHO. Seems to me the best investments are in companies that don’t try to paint a pretty outlook for the future, because the work isn’t done yet.
This dive really pushed the bands far apart. It looks like we can expect some volatility, based on this chart below. Until it lifts up away a bit from the lower Bollinger Band, I personally don’t expect it to rally back though. If anything, it may just keep sliding down.
Notice, volume seems to be getting back to normal now. That shows that the panic selling is over, for now.
Fibonacci Pivot Points
This is the last day of the month, so I won’t really pay attention to these until tomorrow. But part of me is looking at that break down through S3 and thinking, it is definitely time to buy. I’ll wait though. I don’t make decisions based on 1 technical alone.
The current RSI for FB is 30.81. This signifies that it is coming out of an oversold condition.
The FB MACD shows a downward trend. Not surprised.
The Stochastic suggests a slowing down of the selling, but hasn’t said anything other than FB stock is oversold.
Facebook has a lot of investors who have sold, at a loss. There are probably a lot of others who are holding on, hoping for a pop in the stock price, and will sell, trying to get their money back. I’m not sure that we will see FB near its 52 week high any time soon, an I think there is going to be a lot of selling pressure ahead.
Plus, I think the market is due for a hard dump overall, and that isn’t going to help FB. But, that being said, I am not a financial adviser, and I know about as much or less as the next person.
What do you think? I’d love to hear from some of my readers. Leave a comment below, thanks!