Technical Analysis – Facebook stock tumbles near 200-day SMA

Melina Deltas, XM Investment Research Desk

Facebook stock price extended its losses over the previous couple of days, finding strong support at the 200-day simple moving average (SMA), marginally above the 38.2% Fibonacci of the wave 218.44 – 123.30 around 160.00.

The RSI turned lower after entering oversold territory below 30. At the moment, it continues to head down in support of a negative short-term picture. The bias in the very-short-term also looks bearish as indicated by the MACD which is strengthening its negative momentum below trigger and zero lines.

A downside structure in the stock may encounter immediate support near the 160.00 handle. The next support levels are coming from the 156.00 barrier and the 152.00 inside swing top, taken from the high on January 18.

On the other hand, an advance could stop at the 50.0% Fibonacci of 170.82 before moving north to 174.29, erasing yesterday’s losses.

Concluding, the market shifted the short-term bias to bearish, however, the significant support at the 200-SMA may provide significant rebound, sending prices higher again.