Nov
18

Facebook (FB) stock plummets, downtrend remains intact

FB 2

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.

Nov
18

Facebook (FB) Shares Break Out of Downtrend

FB

Facebook (FB) Stock Forming Base at $49, Trading Above Descending Channel

Despite reporting earnings that easily exceeded expectations, some comments from the conference call spooked investors and sent shares of Facebook (FB) into a downtrend for the past month. Last week FB broke through the upside of their descending channel and appear to be forming a floor at $49. I viewed the market’s reaction to management’s comments during the CC as irrational and overstated and believe their long-term growth prospects are still well-intact. If shares have truly broke out of their downtrend and are forming a base at $49, this level should prove to be an attractive long-term entry point. We will be monitoring their price action closely today, looking for FB to remain above $49 and confirm their break out.

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.

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