I got a lot of messages last week from people asking if they could buy at $300-330 when I didn't have a clear plan to trade. They were chattering on social media that Facebook shouldn't be so cheap. On the other hand I could get word from many sources that numerous trading houses, banks, etc. thought that tech stocks were still not cheap and that institutions were moving away from highly valued stocks that were on an erratic growth trajectory.
The reality is that the price of Facebook NASDAQ:FB has fallen quickly below multiple support levels, especially below the uptrend line and EMA 200, and there is still a predictable opportunity to short the stock if there is an upward rebound correction.
Hey @Super_B_XinR , great analysis! Although I've said that I wouldn't dare short at 230 because It's already down by so much, your points make a compelling case.
A question: How do I make my charts look like that, is it some kind of a script or what?
Dtrader2020
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On a technical stand point we have a solid support at 175. Weekly RSI oversold, going up, MACD signal going to cross.
and with the VIX fix we see past patterns of when it reached near the -37 area. it tends to always bounce around that. so we may see a bounce soon or at 175.
Imdmagic1
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Macro concerns are even worse. Apple privacy updates made this drop, and that hasn’t worked through the price yet. Now Google is threatening to follow suit. If GOOG has the same level of privacy protections as Apple, this price will drop in half.
Dtrader2020
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@Imdmagic1 that won't happen for another 2 years. And they have been clear that they won't do like apple and would work to help fb and other advertisers adapt and work out solutions to not impact them like apple did.
Imdmagic1
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@Dtrader2020, perhaps! But in this environment, things will move before then, I think.
Also, how much valuation loss will happen if they pull that sweet Russian Disinformation revenue out of their model. Another 15-20%? :P
Dtrader2020
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@Imdmagic1, true. I did not consider the misinformation, or even the scam ads that we seen. Shit... I didn't consider that. I looked at the DAU with a correlation to value...but advertising part... Definitely benefits from that.. thanks. I need to redo my FA analysis. This will be fun...
Imdmagic1
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@Dtrader2020, lolz…I was mostly joking. I don’t know that any of us have those details, and even if we did (which would be shocking to see, I’d wager) the Russians have money scattered all across the globe. Nothing will happen here…mostly just trolling ‘ joking. :P
Although I've said that I wouldn't dare short at 230 because It's already down by so much, your points make a compelling case.
A question: How do I make my charts look like that, is it some kind of a script or what?