FB Facing Key Resistance

Mike Paulenoff MPtrader

FB -- From a very near term perspective, as long as FB preserves its prior pullback low at 174.67 established on 12/26/17, there is a short term trading opportunity to the upside into the 180-182 key resistance zone, where there is a confluence of technical negativity that will be difficult for FB to overcome in the absence of some bullish event or news-- such as earnings.

That said, however, earnings are due out on the afternoon of Jan. 31st, which is an eternity from now. In the interim, given the developing negative set up on an intermediate term term basis, my sense is that FB strength will be capped at 180-182 until the earnings report. If such a scenario unfolds, then brief rallies in FB will be followed by potentially sharp bouts of weakness that will probe and retest 176-174.70 support, which must contain any selling pressure for FB to avert additional weakness that fully tests its rising 200 DMA, now at 165.20. MJP

Author

Mike Paulenoff

MPtrader

Michael Paulenoff has been a student of and a participant in the world financial markets for the past 26 years, since his graduation from the Georgetown University School of Foreign Service in 1979.

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