Facebook (FB) Support

By | April 30, 2014

Shares of Facebook (FB) broke through their 50 day moving average in March and have since traded in a range between $64.00 and $55.00. Channel resistance is just below the 50 day moving average and channel support is being reinforced by an uptrend line drawn off the July and November 2013 lows. The relative strength index and MacD (note: I underlay the weekly histogram on the daily indicator) are in slight bullish divergence to price, and while positive money flow is weak, the Chaikin money flow indicator and the money flow index, a volume weighted relative strength measure, are above their 21 period signal lines. If the stock price has stabilized and is ready to turn higher it’s in a good position to begin the move.

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