Facebook (FB) set a double-top on September 1 and September 10 at $384.33 and $383.79, respectively. The downside since then has been $322.70 set on October 4. This is above its 200-day simple moving average at $315.70.
There is potential significant volatility as its semiannual and annual value levels lag at $289.36 and $287.05, respectively.
Facebook has a p/e ratio of 25.41% without paying a dividend, according to Macrotrends. The company has beaten earnings-per-share estimates in five consecutive quarters.
Facebook is testifying in Congress today. A company whistleblower is discussing issues related to photo-sharing among teenaged girls.
The Daily Chart for Facebook
Not on the chart is a golden cross for Facebook, which was confirmed on June 4, 2020. The chart shows the 50-day simple moving average above the 200-day simple moving average with the 200-day SMA the line at which to buy on weakness. This happened on January 14, 2021, at $247.74, and on February 23 at $258.81.
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The lowest horizontal line is the annual pivot at $287.05, which was a magnet between November 4, 2020 and March 30, 2021. The stock has been above this key level since then. The next horizontal line is the semiannual value level at $289.36.
The highest two horizontal lines are the weekly risky level at $359.56 and the quarterly risky level at $367.52. Above the chart is the monthly risky level for October at $401.25. The 200-day simple moving average is $315.69 with the semiannual and annual value levels at $289.36 and $287.05.
The Weekly Chart for Facebook
The weekly chart for Facebook has been negative since the week of September 24. The stock is below its five-week modified moving average at $353.32. The stock is well above its 200-week simple moving average or reversion to the mean at $220.27. The 12x3x3 weekly slow stochastic reading is declining at 49.67.
Trading Strategy: Buy Facebook on weakness to its 200-day simple moving average at $315.70 and add to positions at the semiannual and annual pivots at $289.36 and $287.05, respectively. Reduce holdings on strength to the weekly and quarterly risky levels at $359.56 and $367.52, respectively.