Long-Term Trends for FANG Stocks

With September coming to a close, what better time to analyze the long-term trends for FANG stocks using monthly candlestick charts. I use monthly candlesticks to analyze and determine the long-term trends, weekly candlesticks to confirm my monthly candlestick analysis, and daily candlesticks to execute the trades from the analysis.

And while I do use monthly charts to identify long-term trends, sometimes they do not contain enough detail to confirm a particular pattern. Weekly charts are best used when trying to identify chart patterns.

That is how I typically use monthly, weekly and daily candlestick charts. With that being said, each of the charts below are 5 year monthly candlestick charts.

And as a quick refresher, here is my previous update for the FANG group of stocks:

“FANG Stock Chart Patterns Reviewed – 7/22/2018”

Facebook (FB)

Back in 2017 I calculated a $209 price target for Facebook’s (FB) share price. It finally reached that price target in July before selling off on management comments on increased costs and slowing revenue.

Facebook then had another round of bad news come out last week. Apparently it was hacked and about 50 million user accounts were affected. It will be interesting to see if this bad news causes FB’s share price to pull back into the Trading Channel rather than bouncing from the top of it.

 

 

 

 

 

 

 

The MACD Histogram saw a spike in selling momentum during September 2018. Significant spikes in the MACD Histogram usually mean one of 2 things:[s2If !current_user_can(access_s2member_level1)]……

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I review the probable price action for the FANG stocks and the indicators to watch for to confirm the price action. Do you have shares of Facebook (FB), Amazon (AMZN), Netflix (NFLX) or Alphabet (GOOGL) in your portfolio? If so, then this analysis is what you need to know about.

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1. This is the beginning of a longer consolidation period, consolidating Facebook’s uptrend that began in September 2012
2. Spikes in the MACD Histogram are typically unsustainable without a plethora of bad news or significant bad news

A continued pullback in October would pull FB’s share price back into the Trading Channel. This is an early indicator of a longer consolidation period. If a $149.01 print is made, that would be confirmation of a longer consolidation period.

However, if the MACD Histogram shows a slow down in selling momentum early in October, that would seem to indicate a probable continued bounce from the top of the Trading Channel. Early October could set the tone for the rest of the month.

Amazon (AMZN)

Is there an industry or field that Amazon (AMZN) won’t go into? AMZN’s share price still appears on target to reach the $2,250 – $2,500 price target but may be indicating a consolidation period coming up with the development of a Hanging Man candlestick pattern for September 2018.

A second form of confirmation of a consolidation period would be reflected by a slow-down in buying momentum on the MACD Histogram in October. Monitor the MACD Histogram using a monthly candlestick chart if you are already long AMZN. If any pullback were to develop in October, use the $1,750 level to go long or purchase additional shares if you are already long. Stay long until the upper price target is reached and the uptrend can be re-analyzed.

There is a very good chance that once AMZN’s share price reaches its Golden Ratio price targets, it will pull back right around to the bottom of the Hanging Man candlestick pattern. That is my initial prediction for any sustained pullback that starts to develop once the price targets are reached.

The one thing I do not notice on this monthly chart is an extended wave pattern. Wave 1 of the current uptrend could be one, but I will need to look at a weekly chart that provides a little more detail to determine this. Ask about this in the Idea Chamber in case I forget to post a follow-up…

Netflix (NFLX)

In order to post this update tonight, which I want to do, please refer to the recent post in the Idea Chamber regarding the upside potential for NFLX’s share price during its current uptrend.

The most recent NFLX Idea Chamber post can be accessed here:

NFLX – Idea Chamber

Alphabet (GOOGL)

I’ve written most of my analysis notes for Alphabet (GOOGL) on its chart. Take a moment and zoom in to read them. Well, maybe you don’t have to zoom in. But as I get older, I find myself frequently enlarging text to read it better….

When uptrends have been going on for a while like GOOGL’s has, the MACD will usually get to a zero reading or even possibly start to reflect selling momentum before the share price reaches its new all-time high and the next consolidation period begins. GOOGL still as a little bit to go before reaching a zero reading on this long-term chart. Based on this, there is still a chance for a Wave 5 extension.

But until GOOGL’s share price makes a new high on higher than average buying volume, there is also a chance that Wave 5 is complete and the current rebound is a Wave B. This is a point where risk starts to build until that new high is made.

This completes this long-term analysis for FANG stocks. If there are any questions, post them below or in the Idea Chamber. No question is a bad one!

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