As the S&P 500 and Nasdaq have pulled back in recent weeks, many of the previous leadership names in growth sectors have dropped as well.
How can we anticipate when a stock like Facebook (FB) is done with the pullback phase and ready to turn bullish? It’s all about keeping a proper timeframe in mind, and keying in on a particular “line in the sand” where you agree to revisit a particular position.
In today’s video, we’ll break down the stock chart of Facebook using moving averages, Fibonacci retracements, price support levels, RSI and relative strength. We’ll review some of the key levels to watch and discuss how the performance of FB in the coming weeks and months can tell us a great deal about the sustainability of the cyclical bull market. Here are a few questions we’ll attempt to answer:
- How can we use Fibonacci retracements to better define downside risk and anticipate zones of price support?
- What can relative strength tell us about the leadership themes in the coming weeks and months?
- What would we need to see on the chart of FB to indicate a broad move to a “risk off” outlook for the equity markets?
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(VIDEO) One Chart: Facebook Stock $FB
$FB Facebook Stock Chart
The author may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.