Facebook Inc. has become impulsive and non-volatile after rejecting $280 to $270 price level. Facebook Inc. nose dive below $260 price zone as bears are optimistic. Will it sustain the bearish pressure further in the process? What are the charts and technical indicators are saying? Read more to find further insights into today’s FB Technical Analysis.
January 12, 2021, | AtoZ Markets – Facebook Inc. is currently trading around $256 area and trying to decline further. After facing the rejecting from the dynamic level of 20 EMA, the price pushed lower and reached October 2020’s low. As per the current price action, the price may face strong support around $260 to $255 psychological event level in the coming days.
In addition, Facebook Inc. said it is eliminating all substance referencing “stop the steal,” a speech famous among allies of President Trump’s unproven pretensions of election hype, as a component of a heap of measures to stem false information and incitements to brutality on its stage fore of President-elect Joe Biden’s commencement. Besides, On last week’s Thursday, Mark Zuckerberg took to Facebook to make a declaration of the closing of Trump’s rule — on FB anyhow. However, the previous rally on Capitol Hill in Washington, D.C. transformed into a tempest of the Capitol itself by Trump allies following a discourse in which the president said, “we won’t ever surrender.”
Facebook Inc. Nose Dive as the Bears Are Optimistic
FB is currently residing near $256 area and trying to push further downside. However, the market was opened with a bearish gap yesterday, which is still needed to be filled up.
Image: FB 4 Hour Chart
According to the 4-hour chart, Facebook Inc. nose dive and currently residing near $256 price area. As per the current price action, if the price breaks below $260 to $255 support level, the bears may sustain the bearish pressure towards $245 to $240 price area in the process. Alternatively, if the price bounces upside from $260 to $255 support level with an impulsive bullish candle, the bulls may recover higher towards $270 to $275 price area in the days ahead.
Furthermore, the dynamic level of 20 EMA is currently residing over the price. It may work as strong resistance to push the price downward. Also, the Stochastic Oscillator lines are currently residing above the oversold level 20 and may have a bullish intersection. It indicates that the price may retrace upward before continuing the bearish bias further in the process.
FB May Sustain the Bearish Pressure
According to the daily chart, Facebook Inc. nose dive as bears are optimistic. As per the current scenario, if the price can have an impulsive bearish daily candle close below $260 to $255 price area, the bears may sustain the bearish pressure towards $245 to $240 area as a first target. The second target will be $230 to $225 price area if the price breaks below $245 to $240 price area in the process.
Image: FB Daily Chart
Furthermore, the dynamic level is currently residing above the price. It may act as strong support and help the price to sustain the bearish trend. Along with this, the MACD lines are currently residing below the 0.00 level and gradually sloping down. It indicates that bears may continue the bearish trend further in the days ahead.
To conclude, after an extended period of volatility, the bears have successfully broken below $260 psychological support level. A daily close will help to identify the definite momentum in the coming days.