FB closes above its opening price after recovering from early selling pressure
Facebook Inc. (FB) Technical Analysis Report for Mar 14, 2019 | by Techniquant Editorial Team
FB finished Thursday at 170.17 tanking $3.20 (-1.85%), significantly underperforming the Nasdaq 100 (-0.19%). Trading up to $1.60 lower after the open, the stock managed to reverse during the session as bulls took control ending the day above its opening price. The last time this happened on February 20th, FB actually lost -1.55% on the following trading day. Ending the day with an indecisive close, neither buyers nor sellers were able to gain control during the session.
Daily Candlestick Chart (FB as at Mar 14, 2019):
Thursday's trading range has been $2.99 (1.76%), that's slightly below the last trading month's daily average range of $3.00. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently lower than usual for FB.
One bullish candlestick pattern matches today's price action, the Bullish Spinning Top.
Prices are trading close to the key technical resistance level at 171.68 (R1).
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying might speed up should prices move above the close-by swing high at 174.03 where further buy stops could get activated.
Among the five market conditions that our pattern recognition engine identified today, the statistics for the Price Action based market condition "Strong Down Move" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for Facebook. Out of 115 times, FB closed higher 57.39% 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 63.48% with an average market move of 2.29%.
With three out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are NFLX losing -0.66% and GOOGL closing -0.54% lower. On the flipside the best performer has been AAPL closing 1.11% higher. Read more