Facebook Inc. has become volatile and corrective after rejecting $320 to $315 price area. Facebook Inc. dropped below $305 price area as the price faced strong resistance. Is this the end of the bullish trend? What are the charts and technical indicators are saying? Read more to find further insights into today’s FB Technical Analysis.
April 20, 2021, | AtoZ Markets – Facebook Inc. is currently trading around $302 price area and trying to push downside. After bouncing from $275 to $280 support level, the bulls pushed the price higher quite impulsively and hit an all-time high of $315 price area. As per the current price action, the price may find support around $300 to $305 price area in the coming days.
Facebook Inc. Dropped Below as the Price Requires a Downside Retracement
Facebook is currently residing near $302 price area and trying to decline further. However, the price also broke below the dynamic level on the intraday chart.
Image: FB 4-Hour Chart
According to the 4-hour chart, Facebook Inc. dropped below and currently trading around $302 price area. As per the current scenario, if the price can break below $305 to $300 price area with an impulsive bearish candle, the bears may sustain the bearish pressure towards $280 to $275 price area in the coming days. Alternatively, if the price bounced higher from $300 to $305 price area with a bullish candle, the bulls may regain momentum and recover upward towards $315 to $320 price area in the process.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may work as strong resistance to push the price down. However, the bulls may regain momentum if the price can climb above the dynamic level in the days ahead. Also, the MACD lines are still residing over the 0.00 level, which indicates that the bulls are still residing on the market and may strike higher in the coming days.
FB Bulls May Regain Momentum
According to the daily chart, Facebook Inc. dropped below, but the bulls are still optimistic. As per the current price action context, if the price bounced upside from $300 to $305 price area with a daily bullish candle, the bulls may regain momentum and push the price upward towards $315 to $320 price area as a first target. The second target will be $330 to $335 price area if the price can break above $315 to $320 price area in the process.
Image: FB Daily Chart
Along with this, the dynamic level of 20 EMA is currently residing below the price. Along with the Kijun line. So, the dynamic level may work as strong support to push the price higher. Besides, the Kijun line may work as a confluence of the dynamic level in the days ahead. Furthermore, the Tenkan line is currently residing above the price. So, the price requires a daily bullish candle close above the Tenkan line to sustain the bullish trend further in the process.
To conclude, as long as the price residing over $300 to $305 price area, the bias will remain bullish. An impulsive daily close is needed to identify the definite momentum in the coming days.