Facebook (FB) fails to confirm break out, shares down sharply

After signaling a possible break out from their descending channel on Friday, shares of Facebook (FB) fell 6.5% today, indicating that their downtrend remains intact. The key level for FB to hold today was $49, shares gapped down from Friday’s close and trended down the remainder of the day, closing at their lowest price in more than a month. In what was a very bearish day for Facebook stock and the entire social media sector as a whole, shares failed to find support at $48 and could be headed lower in the short term unless a base can be formed at $46 during the next few trading sessions. We will be monitoring FB’s action closely this week.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article.