FB snaps to lowest close since August 19th
Facebook Inc. (FB) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
FB finished Wednesday at 263.52 losing $8.90 (-3.27%), strongly underperforming the Nasdaq 100 (-1.67%). Today's close at 263.52 marks the lowest recorded closing price since August 19th. Trading $5.15 higher after the open, the stock was unable to hold its gains as the bears took control ending the day below its opening price. The last time this happened on Monday, FB actually gained 2.36% on the following trading day. Ending with a weak close near the low of the day sets a bearish note for the next session.
Daily Candlestick Chart (FB as at Sep 16, 2020):
Wednesday's trading range has been $10.65 (3.98%), that's slightly above the last trading month's daily average range of $9.87. Things look different on the weekly timeframe, where the market's trading range of the last week has been below 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 Hikkake Pattern.
Prices are trading close to the key technical support level at 259.26 (S1).
Although the market is currently in a short-term downtrend, this could just be a correction, as both the medium and long-term trends are still bullish.
Further selling might move prices lower should the market test August's nearby low at 247.43.
Among the four market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Bullish Hikkake Pattern" stand out. Its common bullish interpretation has been confirmed for Facebook. Out of 97 times, FB closed higher 53.61% 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 68.04% with an average market move of 1.63%.
With four out of the other four FAANG Stocks closing lower today, the ones that stand out on the negative side are AAPL losing -2.95% and AMZN closing -2.47% lower. None of the markets managed to end the day in the green. Read more