Technical Analysis – Facebook gets meaningful boost; nearby support important
February 3, 2023 1:27 pm
Facebook’s stock (Meta platforms) closed 23% higher on Thursday and far above its 200-day simple moving average (SMA) for the first time in a year.
The spike in the price pushed the RSI comfortably above its 70 overbought mark and straight up to its 2017 and 2013 highs, making some profit-taking likely in the short term. Yet sellers may not take control unless the price dips below the long-term constraining line from August 2015 around 179.50, which triggered the bullish trend in 2018-2019 and in 2020-2021. If the price sets a strong foothold around that line, the recovery may stretch towards the 201 number, where the 38.2% Fibonacci retracement of the 2021-2022 downtrend is placed. Then another victory here could motivate a new rally towards the 225-236 resistance zone.
Should sellers breach the floor at 179.50, the stock may sink to test 23.6% Fibonacci level of 157.73, which was an important support zone during June-September. A step below that base and an extension beneath the 200-day SMA at 151.50 may stabilize around the 20-day SMA currently near 141.20. A steeper decline could reach the tentative short-term ascending trendline at 133.00. Note that the 50-day SMA is also approaching that area.
All in all, Facebook’s stock seems to have improved its fortunes. A sustainable bullish continuation above 179.50 would add more credence to this narrative.
Facebook’s stock (Meta platforms) closed 23% higher on Thursday and far above its 200-day simple moving average (SMA) for the first time in a year.
The spike in the price pushed the RSI comfortably above its 70 overbought mark and straight up to its 2017 and 2013 highs, making some profit-taking likely in the short term. Yet sellers may not take control unless the price dips below the long-term constraining line from August 2015 around 179.50, which triggered the bullish trend in 2018-2019 and in 2020-2021. If the price sets a strong foothold around that line, the recovery may stretch towards the 201 number, where the 38.2% Fibonacci retracement of the 2021-2022 downtrend is placed. Then another victory here could motivate a new rally towards the 225-236 resistance zone.
Should sellers breach the floor at 179.50, the stock may sink to test 23.6% Fibonacci level of 157.73, which was an important support zone during June-September. A step below that base and an extension beneath the 200-day SMA at 151.50 may stabilize around the 20-day SMA currently near 141.20. A steeper decline could reach the tentative short-term ascending trendline at 133.00. Note that the 50-day SMA is also approaching that area.
All in all, Facebook’s stock seems to have improved its fortunes. A sustainable bullish continuation above 179.50 would add more credence to this narrative.
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