Historically when FB reaches this RSI level, the stock drops more than 1% with an average drop of 5.94%. FB is currently in a bearish pennant and due to break out up or down. Based on historics, the pennant, and potential support levels, it looks like a drop to 108.23 is highly likely over the next few weeks.
I am slightly skeptical of the pennant break within the next few trading days, but those believing Trump will reduce capital gains tax rates may conduct massive profit taking for calendar year 2017 while there is profit to be had in order to feel the reward come tax time in Spring of 2018.
The common support level is 0.01% away from the average drop when this RSI has historically been met. This could be a coincidence, but also a helpful indicator of where a selloff could lead.
I am slightly skeptical of the pennant break within the next few trading days, but those believing Trump will reduce capital gains tax rates may conduct massive profit taking for calendar year 2017 while there is profit to be had in order to feel the reward come tax time in Spring of 2018.
The common support level is 0.01% away from the average drop when this RSI has historically been met. This could be a coincidence, but also a helpful indicator of where a selloff could lead.
All forecasts are based on analysis of past behavior. Prior movements are not always indicative of future movement. Develop the theory, test the theory. Do your own research. Nothing in this analysis constitutes advice. YouTube For More. Good luck!!
