Traders officially love to buy FB around 163.39 level
Facebook (FB) Technical Analysis Report for Apr 16, 2018 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, FB ended Monday at 164.83 gaining $0.31 (0.19%) on low volume. Closing within the prior day's range, prices failed to decisively move beyond the previous day's trading range in a lackluster session.
Daily Candlestick Chart (FB as at Apr 16, 2018):
Monday's trading range was $2.39 (1.44%), that's far below last trading month's daily average range of $6.50. Things look different on a weekly scale, where volatility is below the markets average with the monthly volatility being below average. Prices continued to consolidate within a tight trading range between 163.10 and 167.45 which it has been in now for the last three days.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bearish Outside Bar.
Prices are trading close to a key support level at 162.85. Facebook was bought again around 163.39 after having seen lows at 163.77, 163.10 and 163.25 in the last three trading sessions. Obviously there is something going on at that level.
While the share is experiencing a short-term up trend, this could just be a correction, as both the medium and long term trends are still in negative territory.
Buying might accelerate should prices move above the nearby swing high at 168.65 where further buy stops could get triggered. Selling might speed up should prices move below the close-by swing low at 163.10 where further sell stops could get activated.
With three out of the other four FAANG Stocks closing higher today, the ones that stand out on the positive side are GOOGL gaining 0.97% and AMZN closing 0.75% higher. On the flipside the worst performer has been NFLX closing -1.24% lower. Read more