Facebook stock stands near fresh high; further gains are on the way.
Facebook stock has reached another new high of 211.27 on Friday after the strong bounce off the 192.30 support level. The bullish picture in the short-term outlook looks to last for a while longer as the technical indicators are holding above their neutral levels.
In the daily chart, the RSI indicator is sloping slightly to the upside near the overbought zone, while the MACD oscillator is holding above its trigger and zero lines.
If prices continue to head higher, resistance could come from the next psychological levels of 211 and 212 respectively. Moreover, there is a strong resistance obstacle on the 223.67 level, taken from the 161.8% Fibonacci extension level of the down-leg from 189.61 to 148.80.
However, should a downside movement take form, immediate support will likely come from the 40-day simple moving average (SMA) near 194.69 at the time of writing. A slip below this hurdle could see prices touching the 192.30 support, where it bottomed on July 2. Further losses would shift the strong bullish picture to a bearish correction until 182.10.
Overall, Facebook has been trading higher in the medium-term as it completes two consecutive bullish weeks and is ready to post the third straight positive month in the longer timeframe.
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Disclaimer:
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.
source: XM
