Facebook, Inc. (FB) shares of the momentum to set an intraday high of $250.15 on the 13th of July. This has given investors the opportunity to book profits, such as its semiannual risky level is $245.78.
The social media giant missed earnings per share (EPS) estimates in two of the last four quarters. The stock is not cheap, as its P/E ratio is high at 32.84 without offering a dividend, according to the trends.
Facebook stock closed on Wednesday, July 15, to $240.28, up 17.1% from one year to the date and in the bull market territory 75.3% above its March 18 low of $137.10. The stock is 3.9% below its intraday high of $250.15 set on July 13.
The daily chart for Facebook
The daily chart for Facebook, shows a first quarter decline of 38.8% compared to Jan. 29 high of $224.20 for the March 18 low of $137.10. The stock will bring together 82% to its intraday high of $250.15 set on July 13.
The stock has been above a golden cross since the 4th of June, which allows you to track the stock at its all-time high. A golden cross occurs when the 50-day simple moving average rises above the 200-day simple moving average to indicate that the price increase to come.
Facebook stock failed to hold its annual value level of $185.93 on the 25th of March, and then returned to this level, the 23 April. A pivot is almost always is controlled in the course of his time, and that has been the case for this stock.
The Tests of its semiannual risky level at $245.78 took place between 7 July and 13 July. The stock is above its 50-day and 200-day simple moving averages at $229.26 and $201.65. It is also above its monthly value level from July to $219.91.
The table of the week for Facebook
The weekly chart for Facebook is positive but overbought, with its five-week modified moving average of $228.65. The stock is also above its 200-week simple moving average, or the return to the average, at $171.54. This average provided a buying opportunity between the weeks of March 13 and April 10.
The 12 x 3 x 3 weekly slow stochastic reading should be overbought this week, with a reading of 85.45. In the month of January, this reading has been above 90.00, which has put the stock in a “swell parabolic bubble” of the training, and bubbles always pop. The bubble has popped with the market decline, but the stock then rose to a high of all time.
Trading strategy: Buy Facebook stock on the weakness of its monthly value level at $219.91 and reduce holdings on strength to semiannual risky level at $245.78.
How to use my value levels and risky levels: The share price closing price on Dec. 31, 2019, has been an entry to my proprietary analytics. The annual levels of to remain on the charts. The level of the month of July was based on the last nine-month period firm, the third quarter was based on the last nine quarterly closes, and the second half by 2020 the level was based on the last nine to the half-year closes. New weekly levels are calculated following the end of each week.
My theory is that nine years of volatility between the farm are to assume all possible bullish or bearish event for the stock are taken into account. To capture the volatility of stock prices, investors should purchase shares of the weakness of a plan, the value and reduce the holdings of the strength to a risky level. A pivot is a level value of the risk level that was violated in its time horizon. Hubs act as magnets that have a high likelihood to be re-tested prior to their time horizon expires.
How to use 12 x 3 x 3 weekly slow stochastic readings: My choice of using 12 x 3 x 3 weekly slow stochastic readings has been based on the backtesting of many methods of reading the stock prices of the momentum with the objective of finding the combination that resulted in the least number of false signals. I’ve been following the stock market crash of 1987, so I was happy with the results of more than 30 years.
The stochastic reading covers the duration of 12 weeks, high, low, and close for the stock. There is a row of calculation of the difference between the highest and the lowest compared to the farm. These levels are modified for a fast reading and slow reading, and I found that the slow playback will work best.
The stochastic reading scales between 00.00 and 100.00 with readings above 80.00 considered as overbought and readings below 20.00 regarded as oversold. A reading above 90.00 is considered to be a “swell parabolic bubble” of the training, which is usually followed by a decline of 10% to 20% over the next three to five months. A reading below 10.00 is considered to be “too cheap to ignore,” which is usually followed by a gain of 10% to 20% over the next three to five months.
Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.