The first big pattern is a potential following the January 30 drop . The direction of movement was lower, so a continuation pattern like a could point toward another leg down.
Next, the has taken shape along the 50-day ( ). The key line tried to give some support but now that could be fading after two weeks of consolidation.
Third, FB's recent move above $220 could be viewed as a false breakout compared to the July 2018 peak. That creates potential for distribution (otherwise known as "selling") if recent buyers near the highs lose confidence.
The news has already been shifting in that direction because FB's performing the opposite of many other big technology firms like Apple , Amazon.com and Microsoft . They're all delivering in key growth areas (services, AWS , Azure). Even companies like International Business Machines and Twitter are showing signs of a turnaround.
FB , on the other hand, is struggling to grow as regulatory pressures increase. A big downgrade from Pivotal Research yesterday also raised questions about ad revenue.
The current setup also has a potential level for risk management, with bears able to use the 50-day as their pain threshold. To the downside, $200 could be the next line to watch.