After weeks of consolidating inside a symmetrical triangle pattern, Facebook stock made an upside break a few days back, followed by confirmation candles. MACD is also indicating bullish momentum, with a potential rally up to the $72.00 level or higher.
RSI is also reflecting a return of buyers, as the oscillator has moved up from the oversold area and continues to climb. Facebook stock prices have broken above the 50 SMA (simple moving average) resistance, which suggests that the uptrend is ready to continue.
Facebook Stock Forecast
Shares of the social media company have found new reason to rally when news reports revealed that Facebook was crucial in helping parents find their abducted newborn baby in Quebec. This goes to show the contribution of Facebook to society and the potential for helping others in a similar predicament.
The company has been rolling out several developments in the past few months but Facebook stock has been weighed down by a questionable acquisition of a virtual reality company. Elsewhere in the globe, Thailand has blocked Facebook access in the country as it undergoes martial law.
In other news, Facebook stock still faces a potential threat from the EU antitrust issue concerning the recent purchase of instant messaging platform WhatsApp. This has gone through without a glitch in the US and the company didn’t expect to encounter issues and an investigation by the European Commission.
If all goes well, Facebook stock could rally back above the $70.00 levels and continue its ascent. More bad news for the company could lead to another selloff below the 50 SMA, with a break below the longer-term 200 SMA indicative of a deeper downtrend. Nonetheless support at the $56.00 level is expected to hold in the near term.
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