A new dawn for facebook?

Facebook’s year has been very devastating for it’s share price following various negative pressures it faced which started from the Cambridge Analytica scandal, followed by missed earnings in July, departure of Instagram founders and several other data leak stories.

Since the start of the year, the share price is down 21% whilst it is down 36% since the all-time intraday highs on the 25th of July when it was trading at $218 per share.

Since July, the price has been on a downtrend channel and it seems to be the pre-cursor for the other FAANG stocks which later followed this trend.

When looking at the chart, we can notice that since late November, there seems to be a new positive trend (violet lines) forming within the downtrend channel (blue lines).

We cannot be for certain that this is the start of a new trend for Facebook, especially when the broader market is suffering so heavily. What we know however is that Facebook’s price has decreased a lot and it is, in my opinion, considered as undervalued in comparison to other stocks in the sector.

Should the price cross over the downward channel, I think we should start expecting some positive momentum.

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