Three Technical Traders Prepare For Facebook Earnings

Three technical traders spoke to Benzinga about how they are preparing for the Facebook Inc FB earnings announcement.


Rod David noted that “December's high filled the gap back to October's high close. The drop since then attacked November's interim low.”


David felt that that the earnings announcement was “not being greeted from a position of strength, and a negative reaction” could cause the stock to fall to the $69.75 or $64.00 level.


On the other hand, a “favorable reaction that gets through fresh highs above 81.50 would all but ensure [the] next probing above $100,” according to David’s analysis.


Jay Wolberg said that Facebook has “shown that they can grow both revenue, earnings, and margins quarter after quarter.” The consensus EPS estimate of $0.48, however, “ is a high bar, but I expect EPS in the $0.50-$0.55 on strong advertising growth.”


Anka Metcalf echoed Jay Woldberg’s comments about how the company “has a history of reporting better than expected earnings.”

 

Metcalf felt that, overall, the company “is still maintaining a strong uptrend on all major time frame charts and it is right at the point of triggering a weekly buy off the weekly chart.”


If the company reports strong numbers then Metcalf thought it “may run into [the] $82.17 all time high and previous major resistance set on 12/23.”


Metcalf concluded that if the company fails to meet investor expectations then a correction in the stock may bring it into the $73.00 "area of support."


Ahead of the earnings announcement, Facebook Inc traded at $76.82, up 1.37 percent.

Posted In: Anka MetcalfJay WolbergRod DavidTrading Ideas

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.