Facebook, Inc. (FB) has joined FAANG members of Netflix, Inc. (NFLX) and Amazon.com, Inc. (AMZN), with new records on Wednesday, after the completion of a period of three months, the 87-point round-trip triggered by the sars coronavirus pandemic. The Accumulation of readings has climbed to new heights as well, highlighting the renaissance of investor interest in big tech stocks when adding fuel to hopes that the overall market hit the bottom of the barrel in March.
The social media giant gapped up above the January high at $224 on the fifth day of the gathering, supported by the introduction of Facebook Shops, and Instagram of the Shop, two marketing services designed to help small businesses to go online. The tech-heavy Nasdaq 100 index presents a challenge in the first quarter of the top, carving a notch in a powerful reversal of the wave that has booked a 40% rise since mid-March.
Dow component Apple Inc. (AAPL) is now trading at only 10 points under the 2020 high, while the Alphabet Inc. (GOOGLE) is the education of back in the FAANG quintet, stuck over 7% under its February peak of 1 530$. Alphabet stock is more vulnerable than its rivals economic ups and downs because of the dependency on advertising revenues. Even so, investors have been scooping up shares of Google, the parent company of, lifting accumulation of readings to new heights.
FB Long-Term Chart (2012 – 2020)
Facebook went public to much fanfare in May 2012, opening to $42.50 and rising to $45 a few minutes later. As a corollary, the recession, which has posted an all-time low of $17.55 in September, leaving behind a slight rise that has reached the state of the high in September 2013. Immediately breakout has attracted a large population of impulse buyers, lifting above $70 in the first quarter of 2014. The price action and then relaxed in an increase of the channel, with institutional buyers of the takeover in a historic breakthrough that ultimately led to $ 219 in July 2018.
Issues of confidentiality, and then took control of the band, triggering a 42-point sell of the spread and decline that has broken the rising channel, by sacrificing another of 52 points, before dropping back to a two-year low in December. The rebound in 2019 inverted after the input of the gap in July, which gives a constant decline in October, followed by a rally which filled 100% of retracement in 2018 high in January 2020. The subsequent escape has failed three weeks later, reinforcing the resistance at $219.
The price action carved a lower high in February, followed by a vertical decline that was reduced by nearly 40% discount on the value securities in the March lows at $137.10. The rebound in May, following the same trajectory as the state of the downtick, a sculpture in the shape of a V model which reaches to the January high, Tuesday, before the Wednesday, high-volume fracture. The stock is adding to these gains in Thursday pre-market, despite a slight decline in the main points of reference.
The monthly stochastic oscillator crossed in to buy a cycle near the middle panel a few weeks ago, and maintained that the bullish signal, but whipsaws are still possible in the next few weeks. In addition, at the vertical of the price action since March has left behind him a few strong support levels, raising the odds of a correction that shakes out weak hands. In return, the investors can not exclude the possibility of a decline that reached $190 to $200 price of the area before attracting strong interest from buyers.
FB Short-Term Chart (2018 – 2020)
The balance volume (OBV), the accumulation-distribution indicator posted a new record in July 2018 and rolled in a distribution phase which are installed at a 16-month low in November. Subsequent accumulation reached the resistance this week and broke out with the price, setting the stage for a bullish trend that could possibly reach $300. However, a sell-off of the closely aligned 50 and 200 days exponential moving averages (EMAs) of nearly $190 could take place at any time, especially if the market loses ground.
The Bottom Line
Facebook stock has broke above 2018 resistance, on Wednesday, to join FAANG members of Netflix and Amazon is at a record high.
Disclosure: The author held no positions in the aforementioned securities at the time of publication.