Technical Analysis – Facebook stock extends decline amid intensifying negative momentum
- Stefanos Oikonomidis
The momentum indicators are depicting a bearish near-term bias. Specifically, the RSI is flatlining near the 30-oversold area, while the MACD histogram has dived beneath both zero and its red signal line.
Should the negative momentum intensify, the price could descend towards 147.66, which is the 138.2% Fibonacci extension of the 168.78-224.06 upleg. Piercing through this region, the 161.8% Fibo of 134.62 could be the next crucial obstacle for the bears to overcome. Failing to halt there, further downside moves may then cease at the 200% Fibo of 113.50.
To the upside, if selling pressure wanes and the price reverses upwards, immediate resistance might be encountered at the 168.78 level. Conquering this barricade, the bulls could aim for the 61.8% Fibo of 189.90 before the attention shifts to the 38.2% Fibo of 202.94. Higher, the price could challenge the 23.6% Fibo of 211.01.In brief, Facebook’s stock’s short-term picture seems to be deteriorating as it experiences a new wave of downside pressures. For that bearish tone to reverse, the price needs to initially jump above the 224.06 ceiling.
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