Facebook stock analysis shows that the social media giant’s share price has gained more than 50 per cent in value since March 18 this year.
Facebook stock technical analysis shows that if the price starts to hold above the $220.00 resistance level a major bullish technical breakout could take place.
Facebook medium-term price trend
Facebook’s share price has gained more than 50 per cent from the March low, as traders turn increasingly bullish towards the social media company.
Facebook stock analysis shows that following the recent recovery from the $130.00 level, a huge bullish reversal pattern is starting to take shape across the daily time frame.
It appears that a final right-hand shoulder formed to complete the bullish pattern, during the March 18 decline towards the $130.00 level.
The daily time frame highlights that a bullish inverted head-and-shoulders pattern has formed, which holds an upside potential of more than $75.00.
A breakout above the neckline of the pattern, around the $220.00 level, is needed to trigger the bullish reversal pattern into action.
It is entirely possible that a rally towards the $295.00 level could take place if the $220.00 level is overcome.
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 $190.00 level.
The one-hour time frame currently shows that the latest rally towards the $215.00 level has created bearish price divergence on the stochastic indicator.
Looking more closely at the negative price divergence on the stochastic indicator, a correction back towards the $195.00 level is required to reverse the price divergence.
It is also noteworthy that Facebook’s 200-day moving average offers significant technical support on any price dips, and is located around the $190.00 level.
Facebook technical summary
Facebook stock technical analysis highlights that a massive technical breakout will happen if the price rallies above the $220.00 resistance level. The $295.00 to $300.00 area is seen as a possible upside target.