Facebook Inc. has become impulsive and non-volatile after rejecting $280 to $285 event level. Facebook Inc. dropped below $265 psychological area and had a daily bearish candle close. Will it decline further in the coming days? What are the charts and technical indicators are saying? Read more to find further insights into today’s FB Technical Analysis.
February 2, 2021, | AtoZ Markets – Facebook Inc. is currently trading around $262 price area and trying to retrace upward. After bouncing from $245 to $250 support level, the bulls pushed the price upside impulsively, but again failed to break over $280 to $285 resistance level. As per the current price action, the price may retrace towards the dynamic level in the coming days. Moreover, Mark Zuckerberg, the CEO of Facebook Inc. called Australian policymaker a week ago to examine rules that would make web goliath’s pay media sources for content. However, he failed to convince them to change strategy, the country’s Treasurer uttered on Sunday.
Facebook Inc. Dropped Below as the Price Faced a Strong Resistance
Facebook is currently residing near $262 price area and trying to push upward. However, the price also broke below the Kumo Cloud on the intraday chart.
Image: FB 4 Hour Chart
According to the 4-hour chart, Facebook Inc. dropped below and currently trading around $262 price area. As per the current price action, if the price retraces towards $265 to $270 price area and rejects with an impulsive bearish candle, the bears may sustain the bearish pressure towards $250 to $245 support level in the process.
In addition, the dynamic level of 20 EMA is currently residing over 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 coming days.
FB May Sustain the Bearish Bias
According to the daily chart, Facebook Inc. dropped below as the bears are optimistic. As per the current price action, If the price retraces towards $265 to $270 price area and rejects with an impulsive daily bearish candle, the bears may continue the bearish pressure towards $250 to $245 price area as a first target. The second target will be $225 to $220 price area if the price breaks below $250 to $245 price area in the coming days.
Image: FB Daily Chart
Furthermore, the dynamic level of 20 EMA is currently residing over the price. It may work as strong resistance to push the price downward in the process. Along with this, the MACD lines are currently residing below the 0.00 level and may have a bearish intersection. It indicates that bears may sustain the bearish pressure further in the process.
To conclude, as long as the price residing below the dynamic level of 20 EMA, the bias will remain bearish. A daily close is required to identify the definite momentum in the days ahead.