Analysis of a successful deal on Facebook stocks!
Investment idea of May “The conflict is over. Facebook again makes a profit!” Was very successful. Let’s take a closer look at this deal.
As mentioned earlier, in the results of the investment idea: “The conflict is over. Facebook again makes a profit!”, this investment idea, with the recommended entry points and the amount of investment, brought up to 80% of the deposit size or about 1,700 points of profit for the month, which more than justifies all expectations and possible risks.
Facebook entry point
The reason for buying Facebook Inc. shares and the investment idea of May was the complete exhaustion of the conflict on the leakage of personal data, after the series of speeches of the Facebook Inc. CEO M. Zuckerberg.
The actual fundamental signal for the correction was the profit report for March, which, despite the 11.97B revenue decline, showed a significant increase in earnings per share of 1.69, which exceeded the pessimistic forecasts and thus pointed to the undervaluation of these shares in the possibility of legal proceedings around Facebook .
The technical factor to the growth of Facebook shares was their consolidation above the level of 172.00-50. That, firstly, was a signal for the closing of the gap in March and, secondly, the return of shares above the channel, which could be traced from the middle of 2013 to the middle of 2017.
Well, in the third, a return above 172.50 indicated the break of the Fibo level of 61.8 from the high of February 2018 to the low of March, which was followed by the scandal with the leakage of data on Facebook. The consolidating above this level indicates the opening of the road to the levels of 78.6 (185.30) and 100.0 (195.30).
Idea working
The growth of Facebook shares coincided with a decrease in global risks and a return to the stock exchanges of optimism. So, the NASDAQ index was no exception and in May it showed growth, which could not affect these stocks.
Technically, the growth of shares in Facebook Inc. on the restoration was very technical: first the closing of the gap in March and the Fibo level test. 78.6 (185.30) with a slight correction, and then further growth to the annual highs at around 195.00-30.
Goal and Closure
The main reason for closing long positions on Facebook was the renewal of annual highs against the backdrop of the formation of bearish divergence, which could be traced both in D1 and in the monthly tie-frame, which in the end could serve as a signal for correction.
Of course, we shouldn’t forget about the completion of this investment idea and the overbought shares of Facebook Inc. In this case, this asset retains the potential for growth, but after the end of the limiting factors.
Follow the investment ideas of the analytical department of Ester Holdings and have a profit!
Anton Hanzenko