Technical Analysis – Facebook stock recedes from all-time high of 375

Facebook stock has retreated below the 369.00 support after aggressive traction off the 100-period simple moving average (SMA) catapulted the price to a fresh all-time high of 375.00. The advancing SMAs are shielding the short-term bullish structure, endorsing the upside.

However, the Ichimoku lines are indicating that positive drive is temporarily stalled, while the short-term oscillators are suggesting that sellers may be starting to gain a slight advantage.  The MACD’s incline is slowing far above its red trigger line in the positive region, while the RSI is diving in bullish territory. The stochastic lines are exhibiting a bearish tone above the 80 level looking set to slip back into the bullish zone, which would further confirm sellers grasp over the stock is strengthening.

If selling interest intensifies, an initial support barrier could arise from 359.00 until 355.00. Should the price continue to deteriorate, another upside defence could transpire from the 50-period SMA at 348.95 until the 345.00 mark, which also includes the Ichimoku cloud’s upper band. From here, if the price falls below the cloud, the 334.26-338.20 support section could try to dismiss the decline from snowballing. That said, a break of this key trough of 334.26 could then challenge a minor base around 327.32.

Alternatively, if buyers re-emerge, initial upside friction may occur around the 369.00 handle prior to a push towards the all-time high of 375.00. In order to boost upside confidence, buyers would need to push past the all-time high and the 375.78 adjacent barrier, which happens to be the 176.4% Fibonacci extension of the down leg from 357.86 until 334.26. This could generate price propulsion to navigate for the 261.8% Fibo extension of 396 and the 400 round number.

Summarizing, Facebook is sustaining its bullish bearing above the SMAs and the 334.26 trough. The next round of volatility could evolve after its earnings today, which will be released after the market closes.

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