Facebook Falters

By | April 24, 2015

A gravetone doji candle formed on the weekly Facebook (FB) chart. This candle is defined by a narrow opening and closing range situated at the bottom of a wide range period (long wick) candle, and represents a failure to hold highs. The bottom of the range and low of the week is sitting right on the trend line that was the top end of its previous six month trading channel and its 50 day moving average.

4424FBweeklychart

4424FBdailychart

The daily chart shows that most of the damage this week occurred over the last two days, and while the daily candle looks weak there are multiple layers of support, which include the channel trend line, the 50 day moving average, the long term uptrend line, down to the rising 200 day moving average.

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