FB closes below its opening price unable to hold early session gains
Facebook Inc. (FB) Technical Analysis Report for Jul 16, 2019 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, FB ended Tuesday at 203.84 edging lower $0.07 (-0.03%), but still slightly outperforming the Nasdaq 100 (-0.5%). Trading $1.58 higher after the open, Facebook was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on June 27th, FB actually gained 1.85% on the following trading day. Closing within the previous day's range, prices missed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FB as at Jul 16, 2019):
Tuesday's trading range has been $2.37 (1.16%), that's below the last trading month's daily average range of $4.03. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently notably lower than usual for FB.
Two candlestick patterns are matching today's price action, the Northern Doji which is known as bearish pattern and one neutral pattern, the Doji.
The market ran into sellers again today around 205.47 for the third trading day in a row after having found sellers at 205.33 in the previous session and at 205.30 two days ago.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "High close to prior two Highs" stand out. Though it is usually interpreted as bearish, it has actually shown to be bullish for Facebook. Out of 83 times, FB closed higher 55.42% 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 62.65% with an average market move of 1.24%.
With three out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are AMZN losing -0.55% and AAPL closing -0.35% lower. On the flipside the best performer has been GOOGL closing 0.26% higher. Read more