Facebook in bearish correction mode; pauses on 23.6% Fibonacci level.
Facebook stock price has been heading sharply lower over the last three days, hitting the 23.6% Fibonacci retracement level at 175.93 of the up-leg with the low of 114.00 and the high of 195.10. The price extended its losses following the pullback on the 185.60 resistance level and the short-term momentum indicators are confirming the recent bearish bias.
In the daily timeframe, from the technical point of view, the MACD oscillator is falling in the negative approaching its trigger line, while the RSI indicator slipped below the 50 level after the aggressive downward run from the positive area.
If prices reverse lower, in case of a break below the 23.6% Fibonacci level, an immediate support could come at 170.50, which is the lower Bollinger band. A drop below this area could take the stock closer to the 166.70 key level and extend the bearish correction.
To the upside, there are obstacles such as the mid-level of the Bollinger band at 179.81 and the 40-day simple moving average at 182.53, where the price needs to surpass them before moves towards the 185.60 level, taken from the high on February 26.
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