Facebook (FB) shares closed today above the 50% Fibonacci retracement level of the 2018 high and low range. That is a significant technical level but the price action was equally as important.
The stock opened near its low of the day and closed near the high of the day – also the high for the year. Volume was above the 50 day moving average of volume and the Chaikin money flow reading is well into positive territory.
The Facebook chart includes two technical momentum indicators. Moving average convergence/divergence is making a bullish crossover above its center line. The stochastic oscillator has made a bullish crossover and has tracked back above its center line. These readings reflect improving positive price momentum.
A golden crossover is underway with the rising 50 day moving average about to move above the declining 200 day average.
Currently, there is little in the way of overhead resistance for Facebook shares. In fact, the large overhead gap has created a technical vacuum. The charts abhor a vacuum and normally price does everything it can to fill gaps. This is notwithstanding the fact, that the $160 level which has been supplying Facebook shares support for the last two months, is also the upper end of a smaller gap.