One of the stalwarts of the ongoing bull market in stocks has been technology. Just recently, however, the sector has hit a few bumps in the road and its leadership status may now be getting tested. One of the leaders within the sector, Facebook (FB), is also undergoing a potentially key test itself. Specifically, FB is testing the Up trendline that has existed for almost the entire lifespan of the stock.
The trendline (on a log scale) begins at the June 2013 low and connects the low occurring near the end of 2016/beginning of 2017. Presently, the trendline is intersecting the approximate 161 level, just below yesterday’s low.
This is a key test for FB in maintaining its upward trajectory. Additionally, given FB’s weight and influence within the technology space, it is also important for the sector that it holds the trendline.
A break doesn’t necessarily imply the bull run is over for FB, or tech. However, it would mean a shallower trajectory and a potential loss of leadership status. Thus, tech bulls want to see this trendline hold.
So what is our hunch – do we think the trendline will hold? And are there other levels on FB’s chart that are perhaps even more meaningful? In a Premium Post at The Lyons Share, we break down our views on the Facebook chart, including all of the important levels to be conscious of if you trade, or are considering trading, the stock.
Facebook Inc (FB) rose $1.08 (+0.66%) in premarket trading Wednesday. Year-to-date, FB has gained 42.73%, versus a 12.46% rise in the benchmark S&P 500 index during the same period.
If you’re interested in the “all-access” version of our charts and research, please check out our new site, The Lyons Share. Given the cross-currents within the stock market – and other asset classes – there has never been a better time to reap the benefits of our risk-managed approach. Thanks for reading!
Disclaimer: JLFMI’s actual investment decisions are based on our proprietary models. The conclusions based on the study in this letter may or may not be consistent with JLFMI’s actual investment posture at any given time. Additionally, the commentary provided here is for informational purposes only and should not be taken as a recommendation to invest in any specific securities or according to any specific methodologies. Proper due diligence should be performed before investing in any investment vehicle. There is a risk of loss involved in all investments.
This article is brought to you courtesy of Dana Lyons, JLFMI and My401kPro.