Facebook rebound on a 22-month low; negative risks not faded yet.
Facebook’s stock price rebounded on the 22-month low of 128.30, reached on November 20. Currently, the stock is challenging the 50-simple moving average (SMA) in the daily timeframe, making it hesitant to move even higher. Short-term oscillators suggest the current rebound may continue in the immediate term. The RSI is detecting upside momentum, while the MACD is approaching the zero line, weakening the negative movement.
Further recovery in the stock may encounter immediate resistance near the 147.00 level, marked by the latest highs in the prior week. An upside break of this region could open the way towards the 23.6% Fibonacci retracement level of the down-leg from 218.85 to 128.30, around 149.68. Another upside rally would turn the view to a more neutral one and meet the 160.50 level.
On the other side, another wave of losses could stop at the 133.70 support before edging lower to the 22-month low of 128.30. Even lower, the 30, December 2016 low of 114.70 would attract attention.
Concluding, the market remains in a negative mode in the medium term, however, in the near term, the stock seems to be ready for a bullish correction, confirmed by the technical indicators.
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