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Technical Analysis – Facebook rises in descending triangle around 280 level



Facebook stock has been recovering nicely from the downfall to head towards the 245.00 support again, crawling near the Ichimoku cloud and back into the 280.00 territory in the daily chart. In the bigger view, the price has been developing within a descending triangle since August 2020.

From a technical perspective, the short-term bias is viewed as slightly positive, reflected by the improvement in the RSI and the MACD. The RSI is heading north in the bullish area, while the MACD is increasing its distance above the trigger line near the zero level.

A leg above the 280.00 resistance could find an immediate obstacle at the downtrend line around 285.50. Steeper increases could boost buying pressure towards the 292.00-297.00 barrier ahead of the all-time high of 304.54.

However, a downside reversal below the short-term simple moving averages (SMAs) could take the stock until the 200-day SMA at 250.83 and the crucial support at 245.00. Failure to bounce on the latter could bring the 227.00 hurdle into play.

In the medium-term picture, the market continues to print lower highs, holding the negative-to-neutral outlook. A rise above the 292.00 resistance would disturb the bearish pattern, shifting the outlook to positive.

Summarizing, Facebook stock has a potential to gain additional ground. A climb above the record high is expected to trigger the next upside move.   

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