The Facebook stock will drop below 200.00 key level due to that future earnings fall short of expectations due to rising cost. Mostly the income higher report earning comes from the mainland China which China is among the major contribution to the share price. While the pandemic is still happening in the background.
The reported cases has shown less number than actual which coming from the news report. Rumors tell the death tolls rise 10x more than the report actual told.
Have you ever heard 'Buy The Rumors, Sell The News?' This is the phenomenon which stock trader cant denied and most of them still believe that it is true. Buying something you know to be strong, sell something you know which is not to be true. based on the belief that stock prices move in anticipation of rumors and rebound when profit taking occurs after the actual news is released. It's a risky tactic of stock trading based on just rumors or moving events.
WHY PEOPLE SELLING FACEBOOK STOCK AT THE MOMENTS? 1. Any event that took place in the background which coming to causes, the effect is selling. This is example like war, riot, protest, pandemic or insider. 2. Why do you want to buy while other is selling? Right now people not confident to buy the facebook stock rather than seeking the safe heaven to counter the coronavirus pandemic. Where do the trader put their money right now? Gold and silver. 3. Facebook earning revenue major mostly comes from the advertisement/games/apps. Do you know who is the major contribution comes from their revenue? China market. 4. What makes you interest to purchase the facebook stock? You ask yourself this question. Maybe you like because it is facebook name. Some investor love the apps and they invest in it. What makes you yourself interest to purchase facebook stock? Perhaps because the company is strong enough in earning and stable? For sure, nothing is stable in this world and company shareholder would love to see some of their activities or new project which can create future revenue. For now, it just halt and investor seems not interested for now and move to other instrument. 5. Facebook stock can easily impacted by other factor on the sentiments. If I were investor, I will only put money if I confident enough this stock will rise in the future. Else, selling the stock. It is the confident and demand create the buying pressure. 6. Less demand but fear rather than greed which investor selling the facebook stock
Take a closer look at chart that I have illustrated above. If you can see, the selling pressure coming from the robust selling pressure on the second highest high. The second highest high seemingly not confident enough to break the previous (number 1) high. But the pressure making a gap. This is is happen while the uptrend. Meaning it is a reversal confirmed with the robust pressure made my the investor. Investor afraid and fear thus some of the withdraw their capital out from the stock, the others selling the stock for now.
I have predicted on my previous post that this stock will going to be bearish. Right now, the price of facebook stock hold close @ 210 while I have been predicted long time ago since the price was @ 222.
It is still uptrend in focus towards the stock but right now seemingly the price is going to meet the support @ 191.50 price before gaining the momentum and confident from investor to get the power of confident by purchasing the stock higher.