Facebook Stock Analysis

Facebook gained 0.01% in the last trading day, rising from $192.40 to $192.41 , and has now gained 5 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 6 of the last 10 days and is up by 2.53% over the past 2 weeks. Volume has increased in the last day along with the price, which is a positive technical sign, and, in total, 3.91 million more shares were traded than the day before. In total, 15.12 million shares bought and sold for approximately $2 909.37 million.

Trend

Facebook lies in the middle of a wide and strong rising trend in the short term and a further rise within the trend is signaled. Given the current short-term trend, the stock is expected to rise 19.81% during the next 3 months and, with 90% probability hold a price between $213.16 and $237.76 at the end of this period.

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 $191.13 and $183.69. A break down below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Thursday June 07, 2018, 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.


Support & Resistance

On the downside, the stock finds support just below today's level from accumulated volume at $169.39 and $168.15.

There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Facebook finds support just below today's level at $169.39. If this is broken, then the next support from accumulated volume will be at $168.15 and $160.06.

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 $2.59 (1.35%) between high and low. For the last week, the stock has had a daily average volatility of 1.63%.

Our recommended stoploss: $182.29 (-5.26%) (This stock has low daily movements and this gives low risk. There is a buy signal from pivot bottom found 4 days ago.)

Evaluation

Facebook holds several positive signals and is within a strong rising trend. As the old saying says, "Let the trend be your friend.'". We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our recommendation for this stock since last evaluation from a Buy Candidate to a Strong Buy Candidate.


SOURCE: StockInvest.US