Financial and information services firm, Crisp Idea just released another report suggesting that the shares of Facebook Inc (NASDAQ:FB) show a strong momentum based on a technical perspective, and set a price target of $68.53 per share.
In its first report, Crispedia’s three-year price target for the shares of the social network giant was $98 per share based on its fundamental perspective.
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Mita Mehta, a technical analyst at the financial and information services firm, noted the stock price of Facebook Inc (NASDAQ:FB) is in the third wave of “B” wave on a monthly chart and daily chart based on the Elliot wave theory. She believes that “B” has a deep retracement of wave A and can retrace upward to 61.8% ($66) and 78% ($68.53).
Facebook outperforms NASDAQ 100 Index
Mehta noted that the Relative Strength Index (RSI) at 74 shows a strong momentum in an ongoing uptrend. According to her, the stock price of Facebook Inc (NASDAQ:FB) has no immediate resistance. The technical analyst explained that the strong buying indication on a monthly chart is given by the position of price above the 10 months weighted moving average (WMA).
An uptrend direction is indicated by +DMI and –DMI values. Mehta explained when +DMI is above –DMI, it shows a directional uptrend.
“Relative strength indicator suggests that Facebook Inc (NASDAQ:FB) is outperforming NASDAQ-100 Index. It is always beneficial to stay with an outperforming stock,” according to Mehta.
In addition, the technical analyst observed that the stock price of the social network giant is breaking above 10 weeks WMA and 65 weeks WMA. Mehta suggested that Facebook Inc’s (NASDAQ:FB) will likely touch the upper Bollinger Band ($71.39).
RSI position indicate strong upside momentum
Mehta noted that the moving average convergence divergence (MACD), a trend-following momentum indicator that shows the relationship between two moving averages, is above the median line. The technical analyst said the value of RSI is increasing and it is at 42.31 after the stock was oversold. Mehta said Facebook Inc (NASDAQ:FB) is still gathering upside momentum.
The technical analyst emphasized the stock’s RSI position indicates a strong upside momentum for the stock price of the social network giant, which is supported by the directional indicator ADX (average directional index). According to Mehta, the value of ADX is at 16.41 and +DMI is above –DMI, which means the stock will climb with strength. The analysts noted that the stock price of Facebook Inc (NASDAQ:FB) will not experience any immediate resistance, citing that the daily chart shows the price is above all the averages.