Tuesday, January 6, 2015

Annual Trading Forecast on Facebook (2015)

Facebook stock (NASDAQ:FB) was bullish for most of the last year, though the bears also showed their strength in some cases. Price tried to move further upwards in December 2014, but this was rejected and things turned bearish. This novel bearish outlook should not be belittled because it may translate into a significant bearish run. So buyers should beware. When two dogs are fighting over a bone, the fight cannot end until one of them yields.

This month has been bearish so far. Price is now below the upper Trendline, while the RSI period 14 is below the level 50. This signifies the existing bearish momentum, and should price go below the lower Trendline, it could be the beginning of a long-term bearish movement. When the above technical conditions get fulfilled, the outlook for this year would be bearish. Otherwise, the stock may go upwards.

We have gotten to find a way to remains calm when other traders are behaving irrationally. It is not OK to try to trade when our entry criteria are not met. That is why a good trading coach will be an added advantage.

This forecast is ended by the quote below:

“One of the main reasons people have difficulty taking risk is that they are afraid of the consequences of a potential loss. They wonder what they would tell their spouse or their parents should they lose. They wonder what they would need to do to make back the lost money.” – Joe Ross

Azeez Mustapha

Market Analyst, Trading Signals Provider and Coach

Learn from the Generals of the Markets: Market Generals

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