Hi everyone, today we are reviewing Facebook on weekly and daily charts . Weekly chart on Facebook seems to be following 18 to 20 weeks cycle. As visible in the last 4 cycles, we can see the cycle bottoming out a week or two prior to the expected date. Weekly charts show that the trend is up.
So, as visible, we have entered the upward phase of the cycle, however we are testing the upward trend line but below the fast trend line shown in red, indicating momentum has become slow.
I think over the next few weeks we could see price test and find resistance $219.16 (cycle high from 23rd Jul 2018 weekly candle) and then $224.45 (previous cycle high) Weekly support zone at $ 201 to 203.30. This could be good entry point for going long.
Lets now look at daily and see what are the signals that the candles are suggesting.
Since the begining of 2020, RSI is showing weakness. On 29th Jan 2020, price made a new high of $ 224.19 but that being unsustainable , bear brought the price down that day closed $223.19 levels. Next day we saw bears take control and price opened at $206.62 levels, though bulls quickly tried to gain back control closing higher at $209.64 ( there is still a window from $218.40 and 211.39) thisbwill act as a resistance level with the most important level being $ 218.40. While price after bottoming near $ 202 levels has started an attempt to make a upward trend, the last candle is a doji indicating indecision between bulls and bears.
With the existence of the downward window, there could be huge resistance at the $218 zones and price could retest and find support near $ 208 to 209 levels.
On daily timeframe, RSI suggest some weakness.
So what does it mean, we have medium term positive bias on FB, however a rally in the shorter time frame may find resistance at 218 levels and support around 202 levels, before we see renewd upward strengths
If you like what you see, pls share a thumbs up and a comment in the section below
So, as visible, we have entered the upward phase of the cycle, however we are testing the upward trend line but below the fast trend line shown in red, indicating momentum has become slow.
I think over the next few weeks we could see price test and find resistance $219.16 (cycle high from 23rd Jul 2018 weekly candle) and then $224.45 (previous cycle high) Weekly support zone at $ 201 to 203.30. This could be good entry point for going long.
Lets now look at daily and see what are the signals that the candles are suggesting.
Since the begining of 2020, RSI is showing weakness. On 29th Jan 2020, price made a new high of $ 224.19 but that being unsustainable , bear brought the price down that day closed $223.19 levels. Next day we saw bears take control and price opened at $206.62 levels, though bulls quickly tried to gain back control closing higher at $209.64 ( there is still a window from $218.40 and 211.39) thisbwill act as a resistance level with the most important level being $ 218.40. While price after bottoming near $ 202 levels has started an attempt to make a upward trend, the last candle is a doji indicating indecision between bulls and bears.
With the existence of the downward window, there could be huge resistance at the $218 zones and price could retest and find support near $ 208 to 209 levels.
On daily timeframe, RSI suggest some weakness.
So what does it mean, we have medium term positive bias on FB, however a rally in the shorter time frame may find resistance at 218 levels and support around 202 levels, before we see renewd upward strengths
If you like what you see, pls share a thumbs up and a comment in the section below
Comment:
Price moving from Resistance zone beautifully to support zone as suggested up In the charts too