Facebook stock analysis shows that the social media giant’s share price has managed to stage a strong recovery after recently finding strong support from the $136.00 level.
Facebook stock technical analysis shows that the price is fast approaching long-time trendline resistance, around the $172.00 level
Facebook medium-term price trend
Facebook’s share price recently bounced from the $136.00 technical area as US stocks staged a broad-based rally after the Federal Reserve’s announced a quantitative easing programme.
Facebook stock analysis shows that the price is fast approaching crucial technical resistance from a long-term trendline, around the $172.00 level.
The daily time frame shows that if bulls can break above key trendline resistance it could provoke technical buying towards the stock’s 200-day moving average, around the $190.00 level.
Failure to move the price above the $170.00 level may result in technical selling back towards a former key low, around the $150.00 level.
Overall, watch out for a major directional move in Facebook’s share price around the $172.00 level.
Facebook short-term price trend
Facebook stock analysis over the short term shows that buyers are only in control while the price trades above the $197.00 level.
A large inverted head-and-shoulders pattern has formed on the lower time frames, with the neckline of the pattern located around the $170.00 resistance level.
The recent creation of the bullish pattern implies that Facebook’s share value could be heading higher if bulls can hold the price above the $170.00 resistance level.
The size of the pattern indicates that Facebook’s share price could rally towards the $200.00 resistance level over the short term.
Overall, traders should expect a strong reaction around the $170.00 to $172.00 technical area over the coming days.
Facebook technical summary
Facebook stock technical analysis highlights that the price is fast approaching key trendline resistance. A breakout above the $172.00 level could result in a rally towards the $190.00 to $200.00 resistance areas.