Facebook stock price stuck at more than three-month lows following the negative gap and the pullback on the all-time high of 218.44 on July 26. The price plunged below the 50- and 200-day simple moving averages (SMA), indicating the further bearish correction. Moreover, the RSI indicator continues to move with weak momentum below its neutral threshold of 50 and the MACD oscillator is set to drop back below its red signal line in negative territory, both supporting that bearish momentum could stay in place in the short-term.
In case of further declines in the stock price, immediate support may be found near the latest low of 166.38. A downside break of that zone would open the way for the April 25 bottom of 156.00. If sellers manage to push below that hurdle too, the price could drop towards the 148.67 support, taken from the low on March 26, increasing the probability for additional bearish extensions.
On the flip side, if bulls retake control, price advances may stall initially near the latest high of 188.34 and subsequently near the 50-day SMA around 192.00. A potential upside violation of the 192.00 level could push the price until the 203.45 resistance barrier.
In the longer timeframe, despite the latest pullback, the stock has yet to post a fresh lower low, which makes one believe that steeper declines are taking a pause for now.
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