Facebook ready to bounce back?

Is very obvious that Facebook, which is the biggest social network in the world, is currently facing several negative pressures.

The Cambridge Analytica scandal, followed by the missed earnings in July and the departure of Instagram founders in last couple of hours are some of the major adverse news the company has faced this year.

As usual however, I prefer concentrate my analysis on the charts rather than on the news. On the above chart we can see that at the moment the price is sitting on a trend line which goes way back to 2016.

If we focus more on what has happened recently, we notice that the prices are also sitting on an important support level and prices have gone up after touching this particular support (see below chart).

In my opinion, the above represent a good buying opportunity for Facebook which will help the prices bounce back and continue with the upward trend.

 

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Article written by Luca Discacciati

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