Facebook Inc. (FB) more than doubled in price after March’s 52-week low, posting an all-time high at 304.67 during the last week of August. The stock has sold off more than 13% since that time and is now approaching strong support that should generate a reversal and high percentage bounce. Even so, a breakout to new highs appears unlikely at this time, warning market timers to utilize trailing stops and take opportune profits at high-odds reversal levels.” data-reactid=”13″>Facebook Inc. (FB) more than doubled in price after March’s 52-week low, posting an all-time high at 304.67 during the last week of August. The stock has sold off more than 13% since that time and is now approaching strong support that should generate a reversal and high percentage bounce. Even so, a breakout to new highs appears unlikely at this time, warning market timers to utilize trailing stops and take opportune profits at high-odds reversal levels.
Facebook Parabolic Rally
SoftBank Group Corp. (SFTBF – OTC) options plays drove a good part of this parabolic impulse, ahead of a long-overdue pullback that’s dropped the market-leading Nasdaq-100 index a nearly-equal percentage as Facebook, its 5th highest component.” data-reactid=”19″>The social media giant shook off boycott threats from tier one advertisers during the George Floyd protests, racing to higher ground with a select group of other high tech giants. So-called ‘Robinhood traders’ and huge SoftBank Group Corp. (SFTBF – OTC) options plays drove a good part of this parabolic impulse, ahead of a long-overdue pullback that’s dropped the market-leading Nasdaq-100 index a nearly-equal percentage as Facebook, its 5th highest component.
The company just addressed concerns about election manipulation, advising “we won’t accept new political ads in the week before the election. We’ll remove posts that claim that people will get COVID-19 if they take part in voting, and we’ll attach a link to authoritative information about the coronavirus to posts that might use COVID-19 to discourage voting. We will attach an informational label to content that seeks to delegitimize the outcome of the election or discuss the legitimacy of voting methods, for example, by claiming that lawful methods of voting will lead to fraud.”
Wall Street And Technical Outlook
Wall Street consensus has remained steadfastly bullish this year, with a ‘Strong Buy’ rating based upon 30 ‘Buy’ and 4 ‘Hold’ recommendations. A single analyst now recommends that shareholders close positions and move to the sidelines. Price targets currently range from a low of $195 to a street-high $335 while the stock closed out Friday’s session $27 below the median $293 target. Along with technical factors, this placement now favors a strong recovery wave.
Facebook sold off within a point of the 50-day moving average on Friday and bounced into the closing bell. This level marked support in June and July, raising odds for a bounce that could end at resistance between the 290 and 300 price levels. Relative strength indicators have dropped into their most oversold technical readings since February at the same time, with both elements predicting the stock will bottom out in the low 260s and head to higher ground.
article was originally posted on FX Empire” data-reactid=”24″>This article was originally posted on FX Empire
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