Facebook Inc. Found Support Around $250 Price Area – Bulls to Regain Momentum?


Facebook Inc. has sustained its bearish bias and hit September 2020’s low, which is around $250 to $245 price area. Facebook Inc. found support around $250 psychological price area. Bulls to regain momentum 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.  

January 19, 2021, | AtoZ Markets – Facebook Inc. is currently trading around $251 price area and trying to recover higher. After breaking below $265 to $260 support level, the bears pushed the price downside quite impulsively, but failed to break below $250 to $245 support level. As per the current price action, the price may retrace towards the dynamic level of 20 EMA on the daily chart in the coming days.

In addition, Facebook-possessed WhatsApp has chosen to push back a security strategy update that has become a significant source of worry for clients of the platform and has driven numerous clients to erase their WhatsApp accounts. However, a month ago, Facebook has launched the ‘Carts’ highlight on WhatsApp, which permits clients to interface straightforwardly with organizations. Carts permit clients to browse lists, select numerous items and send orders through WhatsApp, making purchasing and selling a lot simpler.

Facebook Inc. Found Support as the Price Requires an Upside Retracement

Facebook Inc. is currently residing near $251 area and trying to push upside. However, after an extended period of volatility over $260 to $265 price area, FB bears have successfully regained momentum.

Facebook Inc. Found Support

Image: FB 4 Hour Chart

According to the 4-hour chart, Facebook Inc. found support and currently trading around $251 price area. As per the current price action, if the price can have an impulsive 4-hour bullish candle close above $252 price area, the bulls may sustain the bullish pressure towards $260 to $265 price area in the coming days.

In addition, the dynamic level of 20 EMA is currently residing above the price. It may work as strong resistance to push the price downside. Also, the Stochastic Oscillator lines are currently residing below the oversold level 20 and had a bullish crossover. It indicates that the bulls may sustain the bullish pressure further in the process.

FB May Revert Back to the Mean

According to the daily chart, Facebook Inc. found support and currently residing near $251 price area. As per the current scenario, if the price can have an impulsive daily bullish candle close above $245 to $250 support area, the price may retrace upward towards $260 to $265 price area in the days ahead. So, if the price retraces towards $260 to $265 price area and rejects with a daily bearish candle, the bears may sustain the bearish bias towards $250 to $245 area as a first target. The second target will $232 to $230 area if the price can break below $250 to $245 area in the coming days.

Facebook Inc. Found Support

Image: FB Daily Chart

Along with this, 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 pull the price upside as a mean reversion. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the process.

To conclude, after an extended period of bearish momentum, the price requires an upward retracement before sustaining the bearish bias. A daily close will help to identify the definite momentum in the days ahead. 

 

 

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