Meta(Facebook): Is this the bottom?
So this is just done on the technical side of the analysis.
So let me give you my personal answer first off I think that when I look at the chart on a technical view this is not yet the bottom.
When We have a look at the zone that is drawn op in the chart in orange we can see that the price did go below that when we got the news of the bad numbers.
We can see that this zone was support and resistance in the past already.
Normally when we reach a zone like that we need to see what the price does here. For my personal experience there are 2 things that can happen now.
The one thing that we do can see now is that the price does seems to be at the 0,618 level of the Fibb.
When we look at the drops that we got in the past we can see that the last time we got a drop after earnings where there was about the same big volume traded was back in 25/06/2018. Then we got bad revenue.
We can see that the first time we got a drop of 21,39%. The total drop off that was 42,75% before we went back up again.
We did went into a bear market for this stock for 150 days. So it did take us a while before we got that.
What we can see now is that the price now already dropped about 26,62%. If now the same thing is going to happen here then we could see a drop even to the price for 185,14. So we could see a bigger drop but like the last time it could take us a while before we get to that level.
All of this data can be viewed by the data that is on the chart in white.
In conclusion:
I think that the price will drop even more now and that we can get this stock at an even better price. For now I will just wait and see what the bottom is that we can get here but for now I am not going to buy this stock.
If you have any questions feel free to send me a message.
If you like the idea do not forget to give it a like and feel free so share your idea on this in the comments.
Everything you see on my profile is just for educational purposes only.
So this is just done on the technical side of the analysis.
So let me give you my personal answer first off I think that when I look at the chart on a technical view this is not yet the bottom.
When We have a look at the zone that is drawn op in the chart in orange we can see that the price did go below that when we got the news of the bad numbers.
We can see that this zone was support and resistance in the past already.
Normally when we reach a zone like that we need to see what the price does here. For my personal experience there are 2 things that can happen now.
- Either we get a break of the zone to the top side and we go up after that. We could also see a break and then first a retest of the zone. When it than is unable to go and break the zone we will see a good move up.
- The other thing that I see that could happen is that we break the zone to the down side and that we after that could go up back to that zone but after is not able to break that zone. After we got a retest of the zone but not a break of the zone we could see a big pull to the down side. What I think could happen is that we will go down to the next big support that we can see in the chart.
The one thing that we do can see now is that the price does seems to be at the 0,618 level of the Fibb.
When we look at the drops that we got in the past we can see that the last time we got a drop after earnings where there was about the same big volume traded was back in 25/06/2018. Then we got bad revenue.
We can see that the first time we got a drop of 21,39%. The total drop off that was 42,75% before we went back up again.
We did went into a bear market for this stock for 150 days. So it did take us a while before we got that.
What we can see now is that the price now already dropped about 26,62%. If now the same thing is going to happen here then we could see a drop even to the price for 185,14. So we could see a bigger drop but like the last time it could take us a while before we get to that level.
All of this data can be viewed by the data that is on the chart in white.
In conclusion:
I think that the price will drop even more now and that we can get this stock at an even better price. For now I will just wait and see what the bottom is that we can get here but for now I am not going to buy this stock.
If you have any questions feel free to send me a message.
If you like the idea do not forget to give it a like and feel free so share your idea on this in the comments.
Everything you see on my profile is just for educational purposes only.
Trade active:
Bought some at 218
Buying just smaller amounts now and have a buy limit order placed at some price point that are lower. If those don't get hit I will be buying more when I have the feeling that the dip is fully over and it is more secure to buy some.