Facebook (FB) - Get Meta Platforms Inc. Report has been trading rather heavy over the last two weeks. After reaching new rally highs as May began the stock has only managed two positive closes over the last 11 sessions. Today FB is taking out a key support area near the April 28 breakout gap after beginning the session with its second steep downside gap this month. For patient Facebook investors lower entry opportunities for this A rated stock could be soon on the way.
Facebook began a powerful rally leg following a Jan. 6 breakout. The stock left behind a major base near its 200 and 50-day moving averages that day. By late April FB had gained more than 30% from the January lows and had re-entered overbought territory. The current pullback is overdue and will likely drive shares down to the 50-day moving for the first test of this key area since the rally began.
In the near term FB investors should expect more downside. A further dip down to the $144.00 to $143.00 area will test a very solid support zone that includes the March high as well as the 50-day moving average. If the stock can regain its footing near this zone, while working off its overbought MACD(moving average convergence/divergence)indicator. On the downside, a close below $141.00 would indicate a more prolonged basing process is likely.
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