Facebook Inc (NASDAQ: FB) has been in the news lately, due to the upcoming earnings reports, which gets released today, and also because of its annual Connect conference on October 28th. The latter one is probably anticipated the most, as the company is expected to announce a change in its name, in order to show that it is not only about social media, but also that it is involved in other technological developments. For now, the new name is kept in secret, however, there are various speculations about it running around on the internet. Some critics say that Mark Zuckerberg is trying to make this move in order to distance the company from the negativity that currently surrounds the name Facebook. As we know from the past experience, many well-known firms have done name-changes to shift people’s perceptions about the company. In 2015, Google changed its name to Alphabet, making Google just a subsidiary and presenting Alphabet as the name of a conglomerate. Facebook wants to do something similar, but will it put a positive spin on the company’s stock? We will have to wait and see.
From the technical side, FB has been declining from around the beginning of September. Also, with the recent drop below a short-term tentative upside support line drawn from the low of October 12th, did not help the outlook either. But in order to aim for lower areas, a break below the current lowest point of October, at 317.38, would be needed.
If, eventually that drop happens, this would confirm a forthcoming lower low, possibly opening the door towards lower areas. We might then see the stock moving towards the 309.16 obstacle, or to the 304.22 zone, marked by the low of May 19th. If that zone is not able to halt the slide, we will aim for the 298.19 level, which is the lowest point of May.
Looking at our indicators on the 4-hour chart, the RSI and the MACD, both seem to support the idea of seeing further declines. The RSI is currently pointing slightly higher but remains below 50. The MACD had just moved fractionally below zero, while continuing to run below the trigger line. The two oscillators show negative price momentum.
In order to examine the upside, we would prefer to wait for a push above the 343.13 barrier first, which is the high of last week. This way more buyers might join in and lift the share price to the 349.51 obstacle, or to the 355.11 hurdle, marked by the high of September 27th. If the buyers don’t stop there, the next potential target could be at 360.00, which is the high of September 21st.
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