FACEBOOK: CUMULATIVE RANGE BEFORE THE GREAT RISE TAKEOFF ???
We observe that after the breakdown of the horizontal line of the merrill pattern at W form and at the 222.88 level, the price experiences a lateral movement within a fairly compressed range between 243.58 and 245.55, the latter level being a resistance that marks the upper limit of the range.
The daily trading volume gives us an ascending volume in the last three days that is not accompanied by a definitive and clear break from the 245.55 level and the last daily candle fails to exceed the maximum of its previous candle being this previous candle a doji candle, therefore it is possible that we enter in a cumulative process before the definitive bullish breakout of this resistance.
It is evident that we are in an area of important negotiation in this asset, but let us not forget that facebook lately is having serious problems with its sponsors due to the new policies regarding freedom of expression are concerned, that is, Facebook has decided not to censor no content on their social network and that is being used by many people to promote hatred and racism, so many sponsoring companies have decided to stop advertising on this social network with consequent losses in terms of publicity for Facebook. We will see if that has a real impact on the share price.
Breakup Targets:
T1) 302.33
T2) 321.32
The daily trading volume gives us an ascending volume in the last three days that is not accompanied by a definitive and clear break from the 245.55 level and the last daily candle fails to exceed the maximum of its previous candle being this previous candle a doji candle, therefore it is possible that we enter in a cumulative process before the definitive bullish breakout of this resistance.
It is evident that we are in an area of important negotiation in this asset, but let us not forget that facebook lately is having serious problems with its sponsors due to the new policies regarding freedom of expression are concerned, that is, Facebook has decided not to censor no content on their social network and that is being used by many people to promote hatred and racism, so many sponsoring companies have decided to stop advertising on this social network with consequent losses in terms of publicity for Facebook. We will see if that has a real impact on the share price.
Breakup Targets:
T1) 302.33
T2) 321.32