Facebook Technical Analysis (NASDAQ:FB)
Technical analysis is the study of stock price and volume data through technical charts. This analysis does not take into account the intrinsic value of a stock. When a chart pattern that can predict future Facebook stock price movements is formed, the FB stock chart can become a key tool for a technical analyst.
See Facebook bollinger bands, SMA (200 day moving average, 50 day moving average) and exponential moving averages. Technical analysis uses an approach for Facebook stock analysis that does not care for the fair "value" of a company but uses price and volume data only.
Facebook Moving Average:
Moving averages show the average price of FB stock over a set time period and help traders see the overall trend by smoothening out the daily variation in price movement. A rise in trend over the long term indicates a long term uptrend. Similarly a falling FB moving average implies that Facebook stock price is falling.
Facebook Bollinger Bands:
Bollinger Bands were developed by the famous technical trader John Bollinger and are a measure of the volatility of a stock like the FB stock. Facebook bollinger bands show that the stock price is $133.53, upper band is 19.76, lower band is 17.48, and the average is 18.62.
Facebook Moving Average Convergence Divergence or MACD:
The moving average convergence divergence or MACD is a technical indicator which helps assess the stock price trend. Traders usually wait for a confirmed crossover signal before entering into a trading position. Divergence implies that the current stock price trend could come to an end, when the stock price diverges from MACD. The Facebook MACD indicator is below 0 indicating a bearish trend.
Facebook Relative Strength Index:
The RSI is a valuable tool to determine overbought / oversold stocks and measures the recent performance of a stock in relation to its own stock price history. If the RSI of FB stock goes above 70 it could indicate an overbought condition, and if it goes below 30 it could signal an oversold position. .