Facebook ($FB) has been faced with the challenge of earning investors’ approval since its IPO earlier this year. This daily NinjaTrader line on close style chart demonstrates the market movement in Facebook ($FB) since the IPO date.
Initially, concerns were focused around Facebook’s ($FB) ability to generate revenue; however the focus may now be shifted toward the popularity and relevance of this social media site. With several other big players on the social media scene – each of which are different and are generally used for different types of posts, Facebook may find it difficult to corner the social media market to remain relevant on Wall Street.
Facebook ($FB) has however, been able to introduce several new features and advancements to offer services similar to other social media sites. The biggest of which, are the advances in privacy features. We all know too well the feeling of posting something online that we would like to share with our friends but possibly not a family member, colleague or acquaintance. Approaching these privacy issues properly is quite the undertaking; however Facebook has, over the past few months, offered several small updates which have collectively eliminated this dilemma for the most part.
Although these advances to the user interface of Facebook ($FB) have been great for privacy, it is also important that these changes have been made gradually. With Millions currently utilizing this social media giant, it is important that they don’t throw any surprises at users that are too significant – at least not all at once. On today’s daily Facebook ($FB) chart, traders can see that this market is currently testing the 50% line of its total market movement since its IPO.
The Relative Strength Index (RSI) is also showing some early signs of this stock being overbought as it crosses back and forth over the 70 line. Ultimately, new features in privacy and other areas that will allow Facebook ($FB) to dominate the social media scene will be important players in the momentum of this market and could prove to be the breaking point from the 50% retracement.
Today’s chart can be recreated for free by downloading NinjaTrader and getting started with free end of day data provided by Kinetick.
MrTopStep, its officers, and directors are not agents, representatives, or affiliates of the CME Group. Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. Any decision to purchase or sell as a result of the opinions expressed in these report(s) will be the full responsibility of the person(s) authorizing such transaction(s). BE ADVISED TO ALWAYS USE PROTECTIVE STOP LOSSES AND ALLOW FOR SLIPPAGE TO MANAGE YOUR TRADE(S) AS AN INVESTOR COULD LOSE ALL OR MORE THAN THEIR INITIAL INVESTMENT. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS.