Facebook fell from its early highs from August i.e $381.27 and made a bearish correction at $301. In the daily time frame there was a strong technical divergence which drove the market somewhat impulsive and very noisy correction. Since Facebook reported earnings a month ago in late October and changed its name to Meta Platforms, the social media giant has been unusually silent. Facebook reported earnings per share (EPS) of $3.22 in the third quarter on revenues of $29 billion. The EPS rose 34% YoY, and revenue jumped 35% in that same time period. These figures grant FB stock the certainty of continued high growth in a market that has seen many growth stocks falter in the second half of this year.

BULLISH AND BEARISH CODNITIONS/ POSSIBILITIES :

On the technical side, we are still trading within the bullish corrective phase, as Facebook broke below some major support levels i.e $350 and $331, near the 38.20% and 61.8% fibo retracement levels. From the current market perspective, the pair is still below the 50% fibo and is struggling too much with building bullish momentum somehow but is failing to do so due to lack of fundamental support. Facbook managed to drive it self above the daily exponential moving averages 50 and 200 but the upside move seems to be limited. The exponential moving average 200 in the four hourly time frame along with 38.2% fibo retracement level needs to be broken with an impulsive move in order to continue its hawkish trend. On the bearish side, a bearish reversal below the 61.8% fibo retracement level - would extend further losses to facebook by falling at $296.21.

Facebook Painting a Bearish Picture

Dec 14 2021

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