As we know, Facebook Inc (NASDAQ: FB) has been targeted by various institutions across the world with different fines over data protection. In addition to that, some countries have attacked the company for allowing harmful content on its platform. But the last issue is still debatable, due to freedom of speech, and the fact that the accusations are politically driven. Despite all the negativity, which is lately surrounding the stock, FB continues to climb higher. Maybe it is because investors still see some value in the stock and have faith in the company’s business model.
After getting hit in the second half of 2018, the Facebook stock found support near the 123.40 level on December 21st, from which it reversed back up and continues to grind higher very calmly. We can see that the stock continues to trade above its short-term upside support line taken from the low of December 21st. That said, because different institutions across the world, which are still willing to prosecute the company, we will remain cautiously bullish over FB’s near-term outlook.
We can see that yesterday, the stock broke above one of its key resistance areas at 166.22, marked by last week’s high. This could have now opened the path for FB to travel further travel north, where the next potential resistance could be seen near 171.80, marked near the high of February 5th. This is where the price might stall for a bit, or even retrace back down. But as long as it remains above the previously-mentioned upside support line, we will remain somewhat positive on the stock’s outlook. If FB makes a firm push higher and breaks above the 171.80 barrier, this would confirm a forthcoming higher high and could lead the share price to the 179.25 level, marked by the high of August 30th.
Alternatively, a break of the aforementioned upside support line and a price-drop below the 160.00 hurdle, marked by the low of February 21st, could spook investors, as it may increase the chances for FB to slide to the 151.50 obstacle, which is the high of January 22nd. If investors won’t see any value in the stock even at that price, the share price could move even lower, dragging itself to the 142.50 level, which is the low of January 24th.
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