FB pushes through key technical resistance level
Facebook Inc. (FB) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
FB ended Thursday at 163.34 gaining $7.13 (4.56%), strongly underperforming the Nasdaq 100 (5.72%). The bulls were in full control today, moving the market higher throughout the whole session. Closing above Wednesday's high at 162.99, the market confirmed its breakout through the prior session high after trading up to $1.01 above it intraday.
Daily Candlestick Chart (FB as at Mar 26, 2020):
Thursday's trading range has been $6.90 (4.36%), that's far below the last trading month's daily average range of $10.27. Weekly volatility is also lower, being 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 Short Candle and the White Candle which are both known as bullish patterns.
Buyers managed to take out the key technical resistance level at 159.93 (now S1), which is likely to act as support going forward. The last time this happened on Tuesday, FB actually lost -2.96% on the following trading day. Prices are trading close to the key technical resistance level at 170.79 (R1). After having been unable to move above 162.99 in the previous session, the share ran into sellers again around the same price level today, failing to move higher than 164.00.
Though the stock is experiencing a short-term uptrend, this could just be a correction, as both the medium and long-term trends are still bearish.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Short Candle" stand out. Its common bullish interpretation has been confirmed for Facebook. Out of 59 times, FB closed higher 52.54% 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 61.02% with an average market move of 0.49%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are NFLX gaining 6.02% and GOOGL closing 5.56% higher. None of the markets ended the day in the red. Read more