Looking for a breakout and reversal
FB has been in a strong uptrend and it follows a certain pattern
- FB tends to respect the 1.618 fibonacci, and it was set at $365
+ FB bounced off another possible support at $372 and $384 was the breakout and it could not breakthrough
+ It is currently trading in a descending triangle - looks to come back to that $365 point
* $365 is a previous consolidation point - which FB test before moving up
+ Opening below the $378 mark, September 13, it is a good sign of the drop ($373 act as breakout)
- The RSI and MACD shows that the stock is overall bearish
+ The MACD (5,35,5) has crossed the signal line and the histogram shows that it is selling
+ RSI still looks up, but usually when it is at the 50 it is a reversal
Price Target is 397.73 (recommend selling $395) October 1
This is constant with the FB trend because FB usually reaches its new high two after the reversal. September 16/17 looks to be when FB will hit its low. October 1 will be exactly two weeks after the predicted low/reversal of FB
- FB tends to respect the 1.618 fibonacci, and it was set at $365
+ FB bounced off another possible support at $372 and $384 was the breakout and it could not breakthrough
+ It is currently trading in a descending triangle - looks to come back to that $365 point
* $365 is a previous consolidation point - which FB test before moving up
+ Opening below the $378 mark, September 13, it is a good sign of the drop ($373 act as breakout)
- The RSI and MACD shows that the stock is overall bearish
+ The MACD (5,35,5) has crossed the signal line and the histogram shows that it is selling
+ RSI still looks up, but usually when it is at the 50 it is a reversal
Price Target is 397.73 (recommend selling $395) October 1
This is constant with the FB trend because FB usually reaches its new high two after the reversal. September 16/17 looks to be when FB will hit its low. October 1 will be exactly two weeks after the predicted low/reversal of FB
Comment:
This morning is VERY bearish day for FB. Analysis seem to be on target with FB hitting its low/reversal September 16/17. The move is too great for it to happen today.
- $374.92 serves as a breakout to the $365-$358 area
- $381 serves as a breakout up to $397
FB will likely fall next week because the price kept getting rejected when it touched the middle of the channel. FB stock closed at $378.86 with the stock on a downward trend.