Technical Update - Meta/Facebook
Kim Cramer Larsson
Technical Analyst, Saxo Bank Group
Summary: Meta Platforms/Facebook was rejected at 55 daily SMA and seems to resume down trend.
With yesterday’s bearish move under heavy volume SMA Meta/Facebook seems to resume its down trend. RSI back below 40 threshold i.e. negative sentiment. Bollinger Bands are expanding indicating trend is in its early stage. March lows at $182.82 is not unlikely to be tested. For this scenario to reverse a daily close above $218.43 is needed.
If $182.43 is taken out there is no strong support before around 149-137. If that scenario plays out it could be the 5th Exhaustive vawe. 5th wave will often reach 1.618 Fibonacci projection of vawe 4 which will be around $154 but could go as far as the same length as vawe 1 i.e. roughly around 150.
For this scenario to be reversed a close above 236.86 is needed. First indication of this scenario to play out would be if we see a daily close above 218.43.
Please note: This article has been prepared for educational purposes only and is NOT a trading or investment recommendation.
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