Facebook stock prices have reversed back down again after finding resistance at the three-month high of 188.23 achieved May 11. The neutral picture in the very short-term outlook looks to last for a while longer after prices failed to break above the aforementioned high. The price is struggling below the 185.60 level and the technical indicators are moving with weak momentum.
The resistance that was met at 188.23 is forcing the price to reverse lower. In the daily chart, the RSI indicator is sloping slightly to the upside in the positive area, while the MACD oscillator is ready for a bearish cross with its trigger line above the zero region.
If prices continue to head lower, support should come from the mid-level of the Bollinger Band (20-simple moving average) around 177.76. Slightly below this level, the 200-day SMA would act as support as well near 175.14 at the time of writing. A drop below these barriers would reinforce the short-term bearish view and open the way towards the 170.50 level.
However, should an upside movement take form, immediate resistance will likely come from 188.23. A climb above this resistance could endorse the medium-term bullish outlook with the next resistance coming from the upper Bollinger Band of 193.05. Should the stock manage to strengthen its positive momentum, the next resistance could come from 195.10, taken from the peak on February 1.
Overall, the Facebook stock price has been trading higher in the medium-term after the rebound on 148.80 on March 26. However, during the previous week, the price completed a negative session snapping the five straight bullish candles.
All trading involves risk. It is possible to lose all your capital
This information is not considered as investment advice or investment recommendation but instead a marketing communication. This material has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.