FB closes within previous day's range
Facebook Inc. (FB) Technical Analysis Report for May 22, 2020 | by Techniquant Editorial Team
Moving higher for the 7th day in a row, FB finished the week 11.4% higher at 234.91 after gaining $3.52 (1.52%) today, notably outperforming the Nasdaq 100 (0.38%) ahead of tomorrow's Memorial Day market holiday. Today's close at 234.91 marks the highest recorded closing price ever. Trading up to $2.77 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 May 8th, FB gained 0.39% on the following trading day. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (FB as at May 22, 2020):
Friday's trading range has been $7.25 (3.13%), that's above the last trading month's daily average range of $6.10. Weekly volatility is also higher, being above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for FB.
Prices are trading close to the key technical resistance level at 237.20 (R1).
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day though could signal a potential change in momentum that might lead to a correction back down towards the center of the Bollinger Bands at 209.42.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 237.20 where further buy stops might get triggered.
Among the six market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing High" stand out. While it is usually interpreted as neutral, it has actually shown to be bullish for Facebook. Out of 642 times, FB closed higher 49.84% 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 61.68% with an average market move of 1.48%.
With two of the other FAANG Stocks closing higher and two closing lower today, the winners of the day are AAPL surging 0.64% and GOOGL gaining 0.46%. On the flipside the worst performers have been NFLX closing -1.59% lower and AMZN losing -0.4%. Read more