HOW LOW WILL FACEBOOK’S STOCK FALL BEFORE IT REBOUNDS TO MORE THAN $300? $FB $QQQ $AMZN $AAPL $GOOG $NFLX $MSFT $GOOGL

Twitter
LinkedIn
Facebook

HOW LOW WILL FACEBOOK’S STOCK FALL BEFORE IT REBOUNDS TO MORE THAN $300? $FB $QQQ $AMZN $AAPL $GOOG $NFLX $MSFT $GOOGL

What a difference a day makes.

Before the big drop in Facebook’s FB, stock in extended trading Wednesday, I was receiving criticism for not raising The Arora Report’s “buy” zone. Now that Facebook’s stock has fallen on reduced revenue guidance and higher costs, here is the most often asked question: “How low will Facebook stock go?” Let us examine that with the help of a chart.

Chart

Please click here for the annotated chart of Facebook. Please note the following from the chart:

• The chart shows the overshoot in Facebook’s stock price.

• The chart shows The Arora Report’s “buy” zone prior to the decline.

• The chart shows the mirror image of the overshoot. In my 30-plus years of experience in the markets, I have frequently observed that when there is a big drop in a stock for fundamental reasons, the mirror image of the prior overshoot often provides a good estimate of how low the stock typically goes.

• The chart shows the major support. Often the major support acts as a magnet, especially if the overall market also starts correcting.

• The flip side of the price overshoot that Facebook recently experienced is an undershoot. Undershoots are fairly common but less likely in this case, because the fundamental valuation of Facebook is attractive. The chart shows the possible undershoot level.

• The relative strength index (RSI) is not yet oversold.

• The Arora Report is “long” Facebook from $49.92. When The Arora Report went bullish on Facebook, there was a lot of criticism. At one time U.S. News & World Report effectively urged its readers to not subscribe to The Arora Report because of its bullishness on Facebook. Not only did The Arora Report stay bullish on Facebook throughout the rise, it was the first to raise the target on Facebook above $200.

Quantitative screen

The quantitative screen of the ZYX Change Method puts the fair value of Facebook at $161.

See also  AN NON-AI STOCK REDDIT SHOWS EXPANDING AI EXUBERANCE, IMPORTANT TREASURY AUCTION AHEAD, FED MIA
Sentiment

In the near term, no amount of fundamental or quantitative analysis is going to matter. Facebook’s stock is going to trade on sentiment. As of this writing, the sentiment on the stock is bullish. The sentiment is especially bullish among the momo (momentum) crowd that has been buying this stock hand over fist. The momo crowd is seeing this dip as a gift to buy the stock at a lower price….Read more at MarketWatch.

A knowledgeable investor would have turned $100,000 into over $1,000,000 with the help from The Arora Report. NOW YOU TOO CAN ALSO SPECTACULARLY SUCCEED AT MEETING YOUR GOALS WITH THE HELP OF THE ARORA REPORT. You are receiving less than 2% of the content from our paid services. …TO RECEIVE REMAINING 98% INCLUDING MANY ATTRACTIVE INVESTMENT OPPORTUNITIES, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

Subscribe to 'Generate Wealth'

Free Forever

More To Explore

30 Day Free Trial

Cancel within 30 days and you owe nothing

When you take a FREE 30 day trial, you get access to powerful techniques used by billionaires and hedge funds to grow richer. You can continue to use these powerful techniques to grow richer even if you cancel your subscription. You come out ahead by subscribing no matter how you look at it.

A fortune is to be made from AI stocks.
Get the list of 18 AI stocks to grab your share of the profits — no cost to you.

A fortune is to be made from AI stocks.

Get the list of 18 AI stocks to grab your share of the profits.

AI is a $1 Trillion Market

Making A Fortune
In Artificial Intelligence

Golden Age of Artificial Intelligence