However, bulls are growing impatient as they await higher prices to take hold.
Maybe now is a good time to remind investors that Facebook stock is the best-performing FAANG holding over the last six months, year-to-date and one-year timeframes.
Facebook stock has quietly outperformed Apple (AAPL) - Get Report , Amazon (AMZN) - Get Report , Alphabet (GOOGL) - Get Report(GOOG) - Get Report and Netflix (NFLX) - Get Report in that time and could be shaping up for more upside as well.
The group has it hard right now, with antitrust investigations lingering over many of them and as we enter a seasonally turbulent period in the stock market.
Let's take a closer look at the charts for Facebook stock.
Trading Facebook Stock
As you can see on the daily chart above, Facebook stock has been making a series of higher lows since the start of 2019. That's highlighted via the purple line on the chart.
However, one can also see overhead resistance, which comes in the form of the 78.6% retracement at $190.35, as well as the 50-day moving average. Both metrics have been keeping a lid on FB stock since early August.
With rising support near current levels, Facebook stock is being forced into a make-or-break event. Either shares need to breakout over resistance near $190 or they need to breakdown to lower prices.
If it's the former and the bulls take control, look for a close over $190.35, the 78.6% retracement. Above that and the September high of $193.10 is the next upside target. Above that mark and the breakout can really gain momentum. I'm not sure if it can get there in the intermediate term, but I would expect resistance to hold firm near $205 should FB stock rally that far.
On the downside, let's say support gives way. In that case, look for a possible decline down to the 61.8% retracement or the 200-day moving average, whichever comes first. If support does fail, there's no guarantee a decline to these levels will happen, but knowing where support may come into play is never a bad idea.
In that case, it's also worth noting that the 61.8% retracement comes into play near the August lows.
The bottom line: Look for a close north of $193. Otherwise, lower prices could be in store.
This article is commentary by an independent contributor. At the time of publication, the author had no positions in the stocks mentioned.