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Facebook Bearish Correction under Way

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Facebook (NASDAQ:FB) stock is looking quite bearish following the aggressive sell-off (-3.98%) during Friday’s session, after posting an all-time high at 79.66. Technically speaking, this enabled the FB stock to remain below that level, as well as below the 50-period SMA on the daily chart.

Therefore, as it stands, if the bears manage to drive the battle lower, then I would expect the stock to challenge the 63.94 area, which coincides also with the 23.6% Fibonacci Retracement level and near the 200-period SMA. From here, I would expect the bulls to give their battle and if they manage to resist, then it might drive the battle back towards the 70.00 area. As long as the previous low holds, the channel is considered valid, since the rate is printing higher highs and higher lows.

However, i consider the 6394 area a turning point for the stock. A clear break below that level, then we should look for a more serious correction towards the strong support level of 60.00. The RSI and MACD support further fall since both of them are falling below 50 and 0, respectively.

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