Facebook Inc. bears have regained momentum after rejecting $332 to $328 key area. Facebook Inc. nose dive below $310 significant event level. Will the price decline further lower 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.
May 11, 2021, | AtoZ Markets – Facebook Inc. is currently trading around $300 price area and trying to climb upward. After breaking over $310 to $315 resistance area with a bullish gap, the bulls pushed the price higher quite impulsively, but failed to sustain the bullish pressure over $328 to $332 price area. However, the price had successfully filled up the bullish gap yesterday. As per the current price action, the price may face strong support around $295 to $300 price area in the coming days.
Facebook Inc. Nose Dive as the Key Level Worked as Strong Resistance
Facebook is currently residing near $300 price area and trying to bounce upward. However, the price also broke below the dynamic level of 20 EMA on the intraday chart.
Image: FB 4 Hour Chart
According to the 4-hour chart, Facebook Inc. nose dive and currently trading around $300 price area. As per the current price action, if the price bounces upside from $295 to $300 support area with an impulsive bullish candle, the bulls may sustain the bullish pressure towards $310 to $315 price area in the coming days.
In addition, the dynamic level of 20 EMA is currently residing above the price. So, it may pull the price higher as a mean reversion in the process. Also, the Stochastic Oscillator lines are currently residing below the oversold level 20 and may have a bullish crossover. It indicates that the bulls may regain momentum in the days ahead.
FB Bulls Are Still Optimistic
According to the daily chart, Facebook Inc. nose dive and currently residing near $300 price area. As per the current scenario, if the price can have an impulsive bullish candle close above $295 to $300 support area, the bulls may regain momentum and recover higher towards $310 to $315 price area as a first target. The second target will be $328 to $332 key area if the price can break above $310 to $315 price area in the coming days. On the other hand, if the price can break below $300 to $295 price area with an impulsive daily bearish candle, the bears may sustain the bearish pressure towards $285 to $280 price area in the process.
Image: FB Daily Chart
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 work as strong resistance to push the price downward. Besides, the Kijun line and the Tenkan line may work as a confluence of the dynamic level in the days ahead. However, the bulls may regain momentum if the price can break over the dynamic level in the days ahead.
To conclude, as long as the price residing over the Kumo Cloud, the bias will remain bullish. As the overall momentum is still bullish, there is a high chance that FB may continue the bullish trend further in the coming days.