Facebook stock is still stuck in its range, with potential short-term profit opportunities on tests of support and resistance. Price is moving above the $72/share level but has failed to make any move past resistance around $78/share.
MACD is moving down, indicating that selling pressure is present, but the indicator might move out of the oversold area soon and draw buyers in. This could lead to a strong bounce off the current levels of Facebook stock and a stronger move to the $80/share level.
Facebook Stock Forecast
The shorter-term 50 simple moving average is still moving above the longer-term 200 simple moving average, suggesting that Facebook stock is still in an uptrend. For now, the 50 simple moving average is being tested as support while the RSI is heading south. This could be a sign that selling momentum might keep any near-term gains in check.
A drop below the $72/share level could lead to a selloff until the 200 SMA, which has also served as a dynamic inflection point for price action. A move until the $70/share area is possible if sellers pile in on Facebook stock.
On the other hand, a buildup in buying momentum, which might be spurred by a pickup in risk appetite, could lead to a rally past the $80/share area and confirm the uptrend for Facebook stock. Bear in mind that the US economy is set to release its jobs data on Friday and possibly show stronger hiring gains for the month of November.
If so, it would indicate that the US economy is faring well and that the continued low rates policy of the Federal Reserve would bode well for companies. This could lead to another strong rally for US equities, pushing indices and Facebook stock to new highs before the end of the year.
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