Facebook finds support near an uptrend line


Facebook (NASDAQ: FB) traded somewhat higher on Tuesday, after it hit support near the 263.00 zone on Friday, slightly above the uptrend line drawn from the low of March 18th, as well as near the 50-day EMA. As long as the stock is trading above that upside line and above all three of our moving averages on the daily chart, we would consider the near-term outlook to be positive and we will class the slide initiated on September 3rd as a corrective phase.

If the bulls are strong enough to take the reins again today, we could see them targeting the 291.00 area soon. That area is marked as a resistance by the inside swing lows of August 28th and 31st. If they don’t stop there, the next target may be the stock’s all-time high, at 304.65, hit on August 26th. Another run higher will take FB into unchartered territory, and thus, with no prior peaks and troughs to mark new resistance levels, we will consider as a potential key hurdle, the psychological zone of 350.00.

Shifting attention to our daily momentum studies, we see that the RSI turned up and just poked its nose above its 50 line, while the MACD, although below its trigger line, stands within its positive territory and shows signs that it could also turn up. Both indicators suggest that the stock may start picking upside speed soon, which supports the notion for another round of buying.

In order to abandon the bullish case, we would like to see Facebook falling below the 263.00 zone. This may also take the price below the aforementioned uptrend line and may initially trigger declines towards the lows of August 4th and 5th, at around 247.00. Another break, below 247.00, may allow the slide to extend towards the 227.00 territory, marked as a support by the low of July 24th.

Facebook stock daily chart technical analysis

 


 

JFDBANK.com - One-stop Multi-asset Experience for Trading and Investment Services

 


The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

84.25% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure: https://www.jfdbank.com/en/legal/risk-disclosure

Analysis feed

FXStreet Trading Signals now available!

Access to real-time signals, community and guidance now!

Latest Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD challenges weekly lows after mixed Durable Goods Orders

US Durable Goods Orders were up a measly 0.4% in August, missing expectations of 1.0%, although Nondefense Capital Goods Orders ex Aircraft jumped 1.8%. Equities bounce from lows, but the dollar maintains its strength.

EUR/USD News

GBP/USD loses 1.2700 as the dollar keeps rallying

GBP/USD approaches its weekly low at 1.2674 as demand for the American currency extends into the final trading session of the week. Hopes for a UK trade deal with the EU doing little for Sterling.

GBP/USD News

Gold: Finally some rest bite as XAU/USD holds at $1865 per ounce

It has not been the best week for the gold bugs as the yellow metal has fallen 4.36% since Monday. At the end of the week, the price has started to consolidate at the USD 1865 per ounce area. 

Gold News

Breaking: ​​​​​​​The IRS makes it hard to pretend you don’t have Bitcoin

The cryptocurrency holders might have a hard time trying to hide their Bitcoins or other digital assets. IRS considers changing the standard 1040 form by including a bold question on the front page:  At any time during 2020, did you sell, receive, send, exchange, or otherwise acquire any financial interest in any virtual currency? 

Read more

WTI moves back to flat and once again trades above $40 per barrel

It has been a mixed Friday for WTI as the price is moving sideways heading into the weekend. All of the excitement was last week when the OPEC+ JMMC decided to keep output levels at their current rate until December.

Oil News

Forex Majors

Cryptocurrencies

Signatures