Facebook: Higher High on 1W. Potential pull back.
Facebook has been trading within a 1W Channel Up (RSI = 69.832, MACD = 8.020, ADX = 41.061, Highs/Lows = 15.2786) since early February 2019. Right now the price is only a fraction below the pattern's Higher High trend line which is typically an early bearish signal.
On top of that both the MACD and RSI indicators on the 1D chart have reached their respective multi month Resistance Zones. This is an additional sell signal. As FB has been trading within a narrower 1D Channel Up since the October Low, our short term Sell Target can't be below the Higher Low trend line (dashed line). Since the former July ATH at 208.50 matches perfectly on the trend line, we will take that as TP (target/ take profit). Notice how well the 1D MA50 comes for support near that level.
It can be argued that the 1W Channel Up has a gap to fill much lower for a Higher Low, but it is too early to discuss that. If the MA50 breaks, then the MA200 may come for support and accumulate buyers without reaching the Higher Low trend line. And since Facebook is on a long term uptrend it is best to buy such pull backs (when/ if they come) and not sell.
~~~ Our previous long term call on Facebook issued last September with the 220 target hit:
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On top of that both the MACD and RSI indicators on the 1D chart have reached their respective multi month Resistance Zones. This is an additional sell signal. As FB has been trading within a narrower 1D Channel Up since the October Low, our short term Sell Target can't be below the Higher Low trend line (dashed line). Since the former July ATH at 208.50 matches perfectly on the trend line, we will take that as TP (target/ take profit). Notice how well the 1D MA50 comes for support near that level.
It can be argued that the 1W Channel Up has a gap to fill much lower for a Higher Low, but it is too early to discuss that. If the MA50 breaks, then the MA200 may come for support and accumulate buyers without reaching the Higher Low trend line. And since Facebook is on a long term uptrend it is best to buy such pull backs (when/ if they come) and not sell.
~~~ Our previous long term call on Facebook issued last September with the 220 target hit:
** If you like our free content follow our profile (tradingview.com/u/InvestingScope) to get more daily ideas. **
Comments and likes are greatly appreciated.
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investingscope.com
Over 65% accuracy on Private Signals Channel.
Over 15% return monthly on our Account Management Plan.
Account RECOVERY services.
Free Channel: t.me/investingscopeofficial
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