Did Facebook Just Bottom?
Facebook has been under plenty of pressure. Will it continue?
Apologies on this post coming so close to the open, but I wanted to do a quick write-up on Facebook (FB).
The stock has been under a lot of pressure lately thanks to plenty of negative headlines. But is that drawdown about to end?
Trading Facebook Stock
The stock fell quickly but orderly down to the 10-month moving average, it’s first test since Q1. From there, it caught enough of a bid to fill the gap up near $338.50, but the September low and 10-day moving average rejected Facebook.
That sent the stock to new lows and a tag of the 200-day moving average, which is exactly what we were looking for just over a week ago.
The test came with divergence on the Williams %R reading (bottom of the chart) and gave us a nice bounce from the lows.
Aggressive buyers were buying the dip on the 200-day. Others that are late to the party can wait for a retest or consider being long over the 10-month moving average and using a tight stop-loss, perhaps near $315 ,or do so a bit more loosely by using Facebook’s closing price.
Disclaimer: Charts and analysis are for discussion and education purposes only. I am not a financial advisor, do not give financial advice and am not recommending the buying or selling of any security.