The favorite stock of many young people and not so young! Facebook has brought a lot of joy and growth in many people's portfolio. Here, we use technical analysis to analyze FB's stock.
Facebook is in the news recently for changing its name from Facebook to Meta Platforms. I think this highlights the importance of the Metaverse in which the future will be in 3D and people can interact in another world.
Facebook is just one of the stocks that will gain from the growing economy of the Metaverse.
Recently Facebook found support at the weekly 50 MA where it also got oversold in the stochastics. The stochastics gave a buy signal. The doji type candle pattern and also the shortening MACD Histogram also tells us that the selling momentum has slowed down.
It is trying to move back up although there is some struggle to move up.
Another doji candlestick that was formed last week told us that investors were unsure about where Facebook wants to go.
I think it will take some time for us to get use to Facebook having a new name. But anyway, as long as we understand each other then that will be alright.
Meta or Facebook found support at the daily 200 MA. There are some other positive signs for Meta. It has broken above a downtrend line, it has broken back above the 20 MA and the 50 MA.
The rising 200 MA also hints to a long term bullish bias for Meta.
All this is positive for Meta. Watch the $325 area. I think if Meta continues to stay above this area, then it is likely to move back up and possibly make new all time highs.
Facebook's stock is still in a nice daily uptrend. There is some resistance overhead that is making it hard to go up but I think if it can find support at the green support area I highlight below, then it is likely to grind higher.
The rising 50 MA and 200 MA still points to a long term bullishness in the stock.
Facebook just reported earnings and it made an all time highs. Despite Mark Zuckerberg announcing that he will take measures to reduce time on Facebook for users and risk earnings from ads, the market still rewarded the share by sending it higher.
Will this stock continue go higher over time?
The chart above is the daily chart of Facebook. It has been drifting higher for a long time. You can certainly trade Facebook but FB is a stock that will be great to buy and hold.
Facebook announced earnings yesterday and despite the news that it has 50 million less hours of user experience each day, investors still rewarded Facebook with a higher price. Facebook has managed to make another new all time high.
I think its because investors reward an entrepreneur that puts the user experience first instead of profits first. Secondly, the amount of users of Facebook is still growing. Thirdly, Facebook has yet to monetize its other popular apps such as Instagram and Whatsapp.
The chart above is the weekly chart of Facebook.
As you can see, it has been in a weekly uptrend for a very very long time. It has managed to stay above its weekly rising 20 MA and 50 MA most of the time.
This is an indication of a strong uptrend in the stock.
Last of all, I want to show you the monthly chart of Facebook.
Apart from the brief drop right after its IPO, Facebook has been in an uptrend ever since.
As they say "The trend is your friend". Facebook's trend has been in a very strong uptrend and therefore you should continue to be bullish on Facebook for a very long time.
If you have time, do check out Internet Live Stats. This website shows the amount of new people using the internet. It also shows you the amount of new users on Facebook.
When you consider the fact that there is still billions of people not connected to the internet and Facebook, you know that there is a great potential for Facebook in the long term.
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