Facebook (FB): Favorable Conditions To Resume 2014 Advance

Conclusion, Investment Implications, Strategy

Facebook (FB) is amid favorable conditions to resume its 2014 advance. A sustained rise above the $201.06 area would help confirm this and target an eventual, additional 41% rise to $295.00 per share. This is an Asbury Momentum idea.

Analysis and Rationale

Facebook, Inc.(FB) provides various products to connect and share through mobile devices, personal computers, and other surfaces worldwide. The company’s products include Facebook that enables people to connect, share, discover, and communicate with each other on mobile devices and personal computers; Instagram, a community for sharing photos, videos, and messages; Messenger, a messaging application for people to connect with friends, family, groups, and businesses across platforms and devices; and WhatsApp, a messaging application for use by people and businesses to communicate in a private way. It also provides Oculus, a hardware, software, and developer ecosystem, which allows people to come together and connect with each other through its Oculus virtual reality products. As of December 31, 2018, it had approximately 1.52 billion daily active users. The company was founded in 2004 and is headquartered in Menlo Park, California.

Chart 1 below plots FB weekly since 2014 along with its 52-week moving average, a major trend proxy. The chart shows that FB is testing, and appears to be recovering from, a test of important underlying support at $203.64. This represents the upper boundary of a 16-month period of sideways investor indecision that prices initially broke out higher from in late December. As long as the $203.64 now loosely holds as underlying support, the December breakout targets an eventual, additional 41% rise to $295.00 per share.

Chart 1

Table 1 below shows that, considering the aforementioned upside target and a protective stop placed below the $201.06 area, a long entry price of $209.63 would provide a 1:10.0 risk/reward ratio (risking $1.00 to make $10.00) with an initial risk of 4.1%.

Table 1

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Please consult the table showing our Asbury 6 key market metrics to help determine if this investment is suitable for you.

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Facebook (FB): Favorable Conditions To Resume 2014 Advance

Conclusion, Investment Implications, Strategy

Analysis and Rationale

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Facebook (FB): Favorable Conditions To Resume 2014 Advance

Conclusion, Investment Implications, Strategy

Analysis and Rationale

Asbury Research

Asbury Research subscribers get more detail on our latest analysis, and updates to our quantitative models

Schedule A 15-Minute Zoom Meeting With Us To Get More Information >>>

Asbury Research subscribers get more detail on our latest analysis,
and updates to our quantitative models