Facebook Shares Testing Previous Highs – August 27, 2014

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Facebook Shares Testing Previous Highs - August 27, 2014

Facebook Shares Testing Previous Highs - August 27, 2014

Facebook shares seem poised to gain more buying momentum, as price is testing its yearly highs around the $75.00/share level. A break past this area could confirm that the stock price is in for more rallies in the near term.

Bear in mind that MACD is staring to reflect weakening buying pressure though, as the oscillator is starting to cross down from the overbought zone. RSI is also heading lower, indicating that sellers could push Facebook shares back down sooner or later.

A price drop could prove to be a potential buying opportunity for Facebook shares, as this could pave the way for a retracement to the area of interest at the $70.00/share level or until the 50 simple moving average, which has acted as dynamic support for Facebook shares.

Facebook Shares Forecast

Further gains for Facebook shares could take price to the $80.00 share level or higher towards the end of the year, as risk appetite is picking up in the US market. Recall that Fed Chairperson Yellen mentioned that stimulus will stay in place until convincing signs of a pickup are seen, upping the odds of easy money and credit for US companies in the next few months.

News that company executives have been unloading shares to benefit from all-time highs in Facebook shares has caused several stock analysts to put the stock on hold for now. The company has also donated roughly $2 billion worth of stock to various charities.

Prospects for the social media company remain unclear for the time being, which could leave Facebook shares consolidating around its previous highs. Clearer direction for the company and stock trends could provide clarity to market forecasts later on, along with the expected pickup in risk sentiment and consumer confidence in the US economy.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com