Lots to LIKE about this Facebook $FB Chart (June 22, 2020)
FB
This is Scott with your Free Chart of the Day. I want to lake a look at Facebook ( NASDAQ: FB ). There is a lot to like about this Facebook ( NASDAQ: FB ) chart (pun intended). If I zoom out here a little bit you can see it looks like the QQQs ( NASDAQ: QQQ ) to be honest. QQQ ( NASDAQ: QQQ ) and tech has been rallying off the March lows and hasn’t really stopped. With that said, Facebook ( NASDAQ: FB ) has been going sideways since about the middle of June, just kind of chewing around consolidating this nice move to the upside.
Now, here’s what I like about this chart: This chart has clearly defined levels. It has a clearly defined level of resistance up here at 241.00. We haven’t been able to get above 241.00 and break into blue-sky territories. But it also has a clearly defined level of support. You can see down here right around that 223.00 level, the stock has really found support around that level. It had a few chances to break down and every time it came down here the buyers came in and supported it.
So here’s what I want to see on this chart: I want to see a break above 241.00 on volume. Now, of course, zooming out here, that would bring Facebook ( NASDAQ: FB ) into blue-sky territories and there would be little to no resistance above. If I zoom in a little closer and break things down to an hourly chart, here’s what I like about this hourly chart: where it goes up it goes up on high volume, pulls back, pulls back on low volume. It goes up again, goes up on high volume, pulls back, pulls back on low volume. So the buyers are stepping in, potentially we are seeing institutional support of this stock and institutions position themselves for this stock to hit all-time highs.
So watch Facebook ( NASDAQ: FB ) and have an alert around 241.00. The good thing about trading like this, having a clearly defined level of resistance, is the fact that you would only want to be long the stock if it breaks above and stays above that key 241.00 level. If it breaks above and then crashes below, well, you are obviously wrong and you would want to close out the trade. But watch Facebook ( NASDAQ: FB ), above 241.00, I know I will be.
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