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Facebook Is Attempting a Breakout

NASDAQ:FB   Facebook, Inc
Facebook has gone nowhere since August, but now the social-media giant could be squeezing toward a breakout.

The first interesting chart pattern is the descending trendline running along the November and January peaks. Prices are now challenging that line.

Second, notice how the 50-day simple moving average ( SMA ) tried to serve as resistance in late February and early March. But then the rising 200-day SMA emerged from below as support. (See the red and green arrows.) Prices are also breaking above the 100-day SMA .

Next is the $255 area. This was near the top on July 31, when FB gapped higher on strong earnings . That level was another source of support in the recent consolidation pattern along the 200-day SMA .

Finally, notice how MACD is now turning bullish for FB .

The fundamental story could also be interesting because advertising revenue has been strong across the Internet space. Additionally, FB is a member of Communications . That sector, created in September 2018, has broken out as other Nasdaq-heavy buckets like Technology and Consumer Discretionary remain below old highs. Thanks to advertising, Communications may offer the cleanest cyclical exposure of the three.

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