FB soars, gaining $19.17 (8.17%) within a single day on high volume


Facebook Inc. (FB) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team

Highlights

FB surges $19.17 (8.17%) after posting strong earnings
FB soars, gaining $19.17 (8.17%) within a single day on high volume
FB breaks back above 20-day moving average
FB rises to highest close ever
FB closes higher for the 3rd day in a row

Overview

Moving higher for the 3rd day in a row, FB ended the month 11.71% higher at 253.67 after surging $19.17 (8.17%) today on high volume, strongly outperforming the Nasdaq 100 (1.78%) following Thursday's earnings report. This is the biggest single-day gain ever recorded for the share. Today's close at 253.67 marks the highest recorded closing price ever. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.

Daily Candlestick Chart (FB as at Jul 31, 2020):

Daily technical analysis candlestick chart for Facebook Inc. (FB) as at Jul 31, 2020

FB reported earnings of $1.8 per share after Thursday's market close. With analysts having expected an EPS of $1.43, Facebook Inc. surpassed market expectations by 25.9%. The company's last earnings report was released on April 29, 2020, when Facebook Inc. reported earnings of $1.71 per share failing market expectations by -0.6%.

Friday's trading range has been $6.85 (2.68%), that's slightly below the last trading month's daily average range of $7.15. Things look different on the weekly timeframe, where the market's trading range of the last week has been way above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FB.

The stock managed to close back above the 20-day moving average at 239.58 for the first time since July 22nd. When this moving average was crossed above the last time on July 1st, FB actually lost -1.74% on the following trading day.

Crossing above the upper Bollinger Band for the first time since May 22nd, prices have shown unusually strong upward momentum in the short-term. This could either indicate a potential buying climax after which prices might head back down towards the mean of the Bollinger Bands at 239.58 or signal the beginning of a strong momentum breakout leading to even higher prices.

The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.

Among the 11 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Facebook. Out of 115 times, FB closed higher 58.26% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 58.26% with an average market move of 0.84%.

With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are AAPL gaining 10.47% and AMZN closing 3.7% higher. On the flipside the worst performer has been GOOGL closing -3.28% lower. Read more


Market Conditions for FB as at Jul 31, 2020

Loading Market Conditions for FB (Facebook Inc.)...
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