Loading...
by Darius Anucauskas

Is Facebook Seeing the Light in the End of a Tunnel?

After last year’s summer, the Facebook Inc (NASDAQ: FB) stock took a major hit, wiping off around 50% of its share value. But FB started off 2019 with a rise, which led to a break of the medium-term downside resistance line drawn from the high of the 7th of August. This has now shifted the near-term outlook to the positive side, in our view, which means that the Facebook’s share price has a good chance to move higher. For now, we will aim a bit higher, but we will quickly change our opinion, if suddenly the price drops back below the downside resistance line.

A good push through the 147.00 barrier, marked by the high of the 12th of December, could invite more buyers to the table. This, of course, could increase the chance for FB to move further up to test the next potential area of resistance, at 153.00. If that obstacle is not able to withstand the bull-pressure, a break of it may drive the stock higher, towards the 159.50 resistance level, which also coincides with the 200 EMA.

Having a quick glance at our oscillators, the RSI and the MACD, both seem to be in support of the above-discussed idea. The RSI is currently above 50 and is pointing higher. The MACD got out of its below-zero territory, is already above its trigger line and points upwards.

On the other hand, if the price starts falling strongly and gets below the previously-mentioned downside resistance line, this could start raising concerns among for FB investors. The price would also be placed back below the 135.90 support level, marked by the low of the 7th of January and the high of the 28th of December. A further slide may drive the stock towards the 129.00 hurdle, a break of which could clear the way to the 123.00 area, which is the lowest point of December.

Facebook daily

Disclaimer:

The content we produce does not constitute investment advice or investment recommendation (should not be considered as such) and does not in any way constitute an invitation to acquire any financial instrument or product. JFD Group, its affiliates, agents, directors, officers or employees are not liable for any damages that may be caused by individual comments or statements by JFD Group analysts and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his investment decisions. Accordingly, you should seek, if you consider appropriate, relevant independent professional advice on the investment considered. The analyses and comments presented do not include any consideration of your personal investment objectives, financial circumstances or needs. The content has not been prepared in accordance with the legal requirements for financial analyses and must therefore be viewed by the reader as marketing information. JFD Group prohibits the duplication or publication without explicit approval.

68% of the retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Please read the full Risk Disclosure.

Copyright 2019 JFD Group Ltd.

 

WEEKLY FINANCIAL NEWSLETTER
RIGHT INTO YOUR MAILBOX!
SUBSCRIBE TO JFD'S STRATEGIC REPORT