Facebook tried to rally on strong earnings yesterday, and the bears were having none of it.
The social-media giant spiked to an eight-week high early, only to close at its lowest price in over a week. In other words, it had a large bearish outside candle on heavy volume.
This chart also illustrates the downward trendline on FB, which has successfully held the stock in check.
Next, notice how stochastics recently showed an overbought condition. Finally, the stock has slipped back below its 50-day simple moving average after a brief attempt to break out.
Speaking of breaking out (more like not breaking out) FB hasn’t hit a new 52-week high in 107 sessions. That places the House of Zuckerberg in the bottom fifth among its Nasdaq-100 peers, according to TradeStation data.
What’s wrong with FB? It appears that good news is known and priced in. Meanwhile potential legal and businesses risks involving Apple (AAPL) are just emerging.
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dude this had nothing to do with Facebook bears , in case you ddint notice, this was just moving long with wat was happening with apple , with Microsoft , with NETFLIX etc, its those hedge funds who are raising cash to close their short positions which are now vulnerable to to the Reddit gang.you know it helps to see th big piture first instead of solely relying on techalas, thiis is why most traders fail
ProfessorBurns
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Approaching 200day MA, has a good chance at bouncing off it, and is approaching oversold on standard RSI. If FB fails to hold above 200MA, then it will be a long-term bear, otherwise you may see FB return to standard pre-correction levels.
Zhassouna
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@ProfessorBurns, your chart make perfect sense. thanks for sharing
kilo1312
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@ProfessorBurns, Agreed. FB hasn't dropped below 200MA despite Congressional hearings, recent dip to 200MA after kicking Trump off of FB & Insta, and myriad other exogenous challenges. I took a position on Friday with the expectation that it would trade back up in the 270s - nearer 50MA - in the next couple of weeks.
alshammaryk
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just watch it next week these is normal mpve of fb