After last year’s summer, the Facebook Inc (NASDAQ: FB) stock took a major hit, wiping off around 50% of its share value. But FB started off 2019 with a rise, which led to a break of the medium-term downside resistance line drawn from the high of the 7th of August. This has now shifted the near-term outlook to the positive side, in our view, which means that the Facebook’s share price has a good chance to move higher. For now, we will aim a bit higher, but we will quickly change our opinion, if suddenly the price drops back below the downside resistance line.
A good push through the 147.00 barrier, marked by the high of the 12th of December, could invite more buyers to the table. This, of course, could increase the chance for FB to move further up to test the next potential area of resistance, at 153.00. If that obstacle is not able to withstand the bull-pressure, a break of it may drive the stock higher, towards the 159.50 resistance level, which also coincides with the 200 EMA.
Having a quick glance at our oscillators, the RSI and the MACD, both seem to be in support of the above-discussed idea. The RSI is currently above 50 and is pointing higher. The MACD got out of its below-zero territory, is already above its trigger line and points upwards.
On the other hand, if the price starts falling strongly and gets below the previously-mentioned downside resistance line, this could start raising concerns among for FB investors. The price would also be placed back below the 135.90 support level, marked by the low of the 7th of January and the high of the 28th of December. A further slide may drive the stock towards the 129.00 hurdle, a break of which could clear the way to the 123.00 area, which is the lowest point of December.
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