FANG Stocks| Facebook Oversold Bounce| Fed Rate Cuts?
Evening Traders!
Today’s technical update will be on Facebook with an oversold bounce coming to fruition, this is similar across the board due to the immense sell pressure.
Points to consider,
- Trend broke key 200 MA
- Local resistance being tested
- Local support at .50 Fibonacci
- RSI approaching yearly lows
- Stochastics in lower regions
- Bull Volume influx
Facebook broke its key 200 MA which plays a historical significance in determining a bear or bull trend. Currently the local resistance zone is being tested (market close) which is in confluence with the 200 MA. A close above will increase bullish bias. A rejection will technically put in a lower high, which is very bearish.
Local support is at the .50 Fibonacci, this can be considered to be the nest logical support if the bears continue to control price.
The RSI is trading at yearly lows; this level here technically indicates a short term bounce. Facebook’s stochastics is also trading in lower regions, can stay here for an extended period of time, however lots of stored momentum to the upside.
Upon market close, there has been a clear influx in bull volume, signalling potential seller exhaustion for the short term, it would only be natural to have a relief rally at some point.
Overall, in my opinion, Facebook and stocks across the board have a high degree of probability in having in oversold bounce. Oscillators are extended, local resistances needs to break otherwise lower highs will be set, which is extremely bearish.
Will Fed rate cuts save the economy again?
Please leave a like and comment,
And remember,
“The obvious rarely happens, the unexpected constantly occurs.” – Jesse Livermore
Today’s technical update will be on Facebook with an oversold bounce coming to fruition, this is similar across the board due to the immense sell pressure.
Points to consider,
- Trend broke key 200 MA
- Local resistance being tested
- Local support at .50 Fibonacci
- RSI approaching yearly lows
- Stochastics in lower regions
- Bull Volume influx
Facebook broke its key 200 MA which plays a historical significance in determining a bear or bull trend. Currently the local resistance zone is being tested (market close) which is in confluence with the 200 MA. A close above will increase bullish bias. A rejection will technically put in a lower high, which is very bearish.
Local support is at the .50 Fibonacci, this can be considered to be the nest logical support if the bears continue to control price.
The RSI is trading at yearly lows; this level here technically indicates a short term bounce. Facebook’s stochastics is also trading in lower regions, can stay here for an extended period of time, however lots of stored momentum to the upside.
Upon market close, there has been a clear influx in bull volume, signalling potential seller exhaustion for the short term, it would only be natural to have a relief rally at some point.
Overall, in my opinion, Facebook and stocks across the board have a high degree of probability in having in oversold bounce. Oscillators are extended, local resistances needs to break otherwise lower highs will be set, which is extremely bearish.
Will Fed rate cuts save the economy again?
Please leave a like and comment,
And remember,
“The obvious rarely happens, the unexpected constantly occurs.” – Jesse Livermore