Facebook Inc. has become extremely volatile after rejecting $305 to $300 price level. Facebook Inc. broke below $270 psychological price zone today during the Asian session. Bears to regain momentum in the days ahead? What are the charts and technical indicators are saying? Read more to find further insights into today’s FB Technical Analysis.
January 5, 2020, | AtoZ Markets – Facebook Inc. is currently trading around $268 price area and trying to push downside. The price has bounced several times from the uptrend line but failed to hold the bullish bias over $265 to $280 support zone. As per the current price action, Facebook Inc. may face strong support around $265 to $270 price area in the days ahead.
In addition, Facebook Inc. supported Libra Association’s rebrand to Diem hoped to suppress a negative view of the project. However, its new fame has not changed the administrative pressures the undertaking actually faces. Moreover, it has been a year and a half since Facebook declared that it was hoping to dispatch its own special payments system project that would plug into its social media stages. The eagerness in the Libra project immediately went to examine, particularly from regulators, monetary organizations, national banks, and significant governments.
Facebook Inc. Broke Below as the Volatility Increased
FB is currently residing near $268 area and trying to decline further. However, the price also broke below the dynamic level of 20 EMA on the daily chart.
Image: FB 4 Hour Chart
According to the 4-hour chart, Facebook Inc. Broke Below and currently trading around $268 price area. As per the current price action, if the price breaks below $270 to $265 support area impulsively, the bears may sustain the bearish pressure towards $250 to $245 price area in the process. Alternatively, if the price bounce upside from $265 to $270 support area, the bulls may regain momentum and recover higher towards $285 to $290 area in the coming days.
Furthermore, the dynamic level of 20 EMA is currently residing above the price. Along with the Kijun line and the Tenkan line. So, the dynamic level may act as strong resistance to push the price downside. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.
FB Still Indecisive Inside the Range
According to the daily chart, Facebook Inc. broke below as bears are optimistic. As per the current scenario, if the price breaks over $265 to $280 range area with an impulsive bullish daily candle, the bulls may recover upside towards $300 to $305 area in the days ahead. On the contrary, if the price breaks below $280 to $265 range zone with a daily bearish candle close, the bears may sustain the bearish pressure towards $250 to $245 area in the process.
Image: FB Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside in the coming days. Also, the Stochastic Oscillator lines are currently residing above the oversold level 20 and had a bearish crossover. It indicates that bears may continue the bearish pressure in the days ahead.
To conclude, the price is consolidating inside $265 to $280 range area for an extended period. A strong breakout is required above or below the range zone to identify the definite momentum in the coming days.