FB can bear Monday
Updated
November 12th FB reached the top of its channel and created a price rejection. It started to create a double top on the hourly and minute charts. FB created a small gap on its way up and it will looking to fill.
Note
If FB turns out bullish it will look to follow this channel. It formed a inverted head and shoulders pattern on the daily chart and indicators are slightly up, but the four hour chart still shows bearish momentum.FB is still in a squeeze and is waiting for a breakout; RSI is at its highest level since September. A rejection November 12th at the top of a downtrend line could potentially signal reversal. $347 would serve as a breakout to $354.
Great caution with a entry November 15th. FB is looking to make a big move next week.
Note
FB ran up to resistance November 15th and was rejected. FB formed an descending triangle with bearish momentum. If it does not gap down November 16th, will be looking for $348 entry and price to fill small gap created. Afterwards, price will look to reach $354.Price Target $341
Trade closed: target reached
Note
FB is creating an ascending triangle after creating an descending triangle. Momentum is looking relative bullish and seems to be entering a short squeeze. The red resistance are hourly gaps that have not been filled. The $347 gap was created November 16th and the $357 gap was created September 22nd. Every other gap, in recent months, has been filled. There is another gap at $328 that has to be filled too. In order to fill that gap the price would have to fall out of the channel and break the current uptrend and fall back into the downtrend channel. FB could likely be trying to fill the $357, causing a bull trap and continuing its downtrend.
Note
FB did a fake breakout out of its ascending triangle and made a bearish reversal breaking through its support level. MACD and Stochastic shows a bearish reversal on most charts but the squeeze shows mixed signals on different charts. The mixed signals could signal a short term bearish trend to the bottom of the channel. Since there is a gap at $328 that causes questions whether FB would go for an ATH. Seems like a bull trap; a couple of big moves will get people bullish on FB just for them to reverse.The weekly chart shows that FB might be trying to retest the uptrend channel it was once following, and the downtrend channel has a support level at $337. The gap crosses the bottom of the uptrend next week - which would lead to believe that the trend line heading to $335 support might be the more likely pattern. There will likely be a rejection because there is bearish momentum on FB weekly squeeze. Filling the $328 gap would put FB back in its previous downtrend and it would be at an vital support level where it consolidated for a few weeks before going on an strong uptrend. This may be the end of the FB run.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.