FB breaks back above 20-day moving average
Facebook Inc. (FB) Technical Analysis Report for Dec 06, 2018 | by Techniquant Editorial Team
FB ended Thursday at 139.63 gaining $1.70 (1.23%), outperforming the Nasdaq 100 (0.64%) ahead of tomorrow's NFP report. The bulls were in full control today, moving the market higher throughout the whole session. Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range.
Daily Candlestick Chart (FB as at Dec 06, 2018):
Thursday's trading range has been $5.96 (4.45%), that's far above the last trading month's daily average range of $4.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for FB.
Two candlestick patterns are matching today's price action, the Bullish Closing Marubozu and the White Candle which are both known as bullish patterns.
Facebook managed to close back above the 20-day moving average at 139.61. When this moving average was crossed above the last time on Monday, FB actually lost -2.24% on the following trading day.
Though the market is experiencing a short-term uptrend, this might just be a correction, as both the medium and long-term trends are still bearish.
Buying could speed up should prices move above the nearby swing high at 143.68 where further buy stops might get activated.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Break through SMA 20" stand out. Its common bullish interpretation has been confirmed for Facebook. Out of 97 times, FB closed higher 54.64% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 55.67% with an average market move of 0.87%.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are NFLX gaining 2.74% and AMZN closing 1.85% higher. On the flipside the worst performer has been AAPL closing -1.11% lower. Read more