Shares have faded from those highs and were trading down about 0.5% even though the tech-heavy Nasdaq was up about 1%.
Is Facebook helping to lead the charge for FAANG? Microsoft (MSFT) - Get Report is also at new highs - which is no surprise, based on the charts - while Amazon (AMZN) - Get Report and Apple (AAPL) - Get Report also have found some momentum lately.
While investors wonder if the move in FAANG can stick, they are keeping their focus on Facebook since the stock was one of the first to really get moving.
Facebook was recently named a top internet stock at Evercore, along with Amazon.
That came a few days after the company received a favorable ruling from the Supreme Court.
In other words, the good news has been working in Facebook’s favor. Can the stock maintain its recent momentum?
While the chart we are looking at is based on the daily timeframe, the monthly setup gave investors an excellent rotation in March.
Coming off an inside month in February - where the entire month’s trading range was contained within the prior month’s range - Facebook cleared $276.60 in mid-March, held this level on a pullback, then ripped higher to new all-time highs.
From here, some digestion definitely wouldn’t be a bad thing.
Specifically, a dip into the $297.50 to $305 area would be ideal for longs, as the 10-day moving average is nearby and could also act as support.
A dip to this area would allow Facebook stock to unwind some of its overbought pressure and give longs another chance to buy the dip.
If a scenario like that plays out, look for a potential move back up to the stock’s 52-week high, then an eventual push higher. Ultimately, the $340 level could be in play.
On the downside, a break of $297.50 could put the $280 to $285 area in play, unless the 10-week moving average comes into play first.