Technical Analysis – Facebook stock stops near 9-month high; positive risks not faded yet


Melina Deltas, XM Investment Research Desk

Facebook stock price advanced to a fresh one-month high of 195.00 yesterday before ending the day in the red.

Momentum indicators signal are neutral to bullish with the RSI flattening in the positive territory and the MACD stretching to the upside above trigger and zero lines. However, the red Tenkan-sen line, which is above the blue kijun-sen line, looks to be heading north. Also, the price successfully overcame the Ichimoku cloud, suggesting that more gains would follow.

An advance could stop at the nine-month high of 197.18 while if there a sharp increase above this crucial level the price could meet the multi-month peak of 218.44.

A downside structure in the stock may encounter immediate support near the 184.55 level, which is the 50-day simple moving average (SMA). The next support levels are coming from the 23.6% Fibonacci retracement level of the bullish rally from 123.30 to 197.18 near the 180.00 psychological mark.

Briefly, the stock price is in process to post a higher high above 197.18, endorsing the recent bullish view in the short- and medium-term timeframe.