A simple Fibonacci analysis of the daily Facebook (FB) chart going back to January 2017 reveals a interesting technical intersection in both time and price.
Facebook shares have been in rally mode for most of the look-back period, except for the February to March broader market pullback period. Since that pullback the technology sector has rallied to new highs, while the S&P 500 Index has failed to make a new high.
The Facebookdaily chart is overlaid with a Fibonacci time series indicator (green vertical lines) using January 2017 as the start point. The lines are marked along the date axis following the Fibonacci number sequence. It shows the Friday session was the start of the 12th Fibonacci zone or more simply, it was the 144th day since the start of the measurement.
These time zones can be used to anticipate potential price reversals.
The blue horizontal lines are Fibonacci retracement levels measured off the same January 2017 low and the June high this year. This is an arbitrary range because the June high has not yet been definitively confirmed as the long term high level.
But when we apply this range to the Facebook chart the retracements fit very well. The March low is a 62% retracement and key support-turned-resistance in the $170 area would be the 38% retracement level. The take away from this conjecture is that the June high may turn out to be an important high and a key technical level.
The chart then reflects an intersection of Fibonacci measurements and it suggests that Facebook is at a critical point in both time and price.