FB still stuck within tight trading range
Facebook Inc. (FB) Technical Analysis Report for Sep 15, 2020 | by Techniquant Editorial Team
FB ended Tuesday at 272.42 gaining $6.27 (2.36%), outperforming the Nasdaq 100 (1.43%). Closing within the previous day's range, prices failed to decisively move beyond the prior day's trading range in a lackluster session.
Daily Candlestick Chart (FB as at Sep 15, 2020):
Tuesday's trading range has been $5.22 (1.93%), that's far below the last trading month's daily average range of $9.63. Weekly volatility is also lower, being below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for FB. Prices continued to consolidate within a tight trading range between 262.64 and 279.16 where it has been caught now for the whole last trading week.
During the whole day, prices traded within the previous day's range, unable to trade above the prior day's high or below the previous day's low forming an Inside Bar.
Prices are trading close to the key technical resistance level at 278.89 (R1).
While Facebook is currently in a short-term downtrend, this might just be a correction, as both the medium and long-term trends are still bullish.
Buying could speed up should prices move above the close-by swing high at 276.64 where further buy stops might get activated. Selling could accelerate should prices move below the nearby swing low at 262.64 where further sell stops might get triggered.
Among the two market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Close to Swing Low" stand out. Although it is usually interpreted as neutral, it has actually shown to be bullish for Facebook. Out of 585 times, FB closed higher 54.53% 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 62.39% with an average market move of 1.78%.
With four out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are NFLX gaining 4.14% and GOOGL closing 1.74% higher. None of the markets ended the day in the red. Read more