Shares are up 1.2% to $168.50 on Monday, which has only added to the gains since Facebook's Dec. 24 low. The stock is up roughly 35% from those lows and has helped give a boost to other large-cap tech stocks.
That said, Facebook's price action has been choppy over the past month, something that's not too surprising, given the overall condition of the market. Will this action resolve higher and push Facebook stock higher? If so, it could trigger a larger breakout in the coming weeks and months.
Trading Facebook Stock
When it comes to FAANG performance, Facebook stock has been one of the stronger names. Shares are up 28% year to date, trailing just Netflix (NFLX - Get Report) and its 35.5% gain. Apple (AAPL - Get Report) and Amazon (AMZN - Get Report) are each up about 20%, while Alphabet (GOOG - Get Report) (GOOGL - Get Report) is up "just" 14.5% so far in 2019.
Can FB stock keep it up?
On the plus side, Facebook stock is holding up over all three of its major moving averages. Further, it's holding uptrend support (blue line) as it pushes higher. After trying to breakout over $170 twice in as many months, Facebook stock has been unable to hold those gains. However, $160 has held as support on both occasions.
Bulls are banking on the old saying, "the more times a level is tested, the more likely it is to break." With that level being $170, investors are looking for the stock to continue trending higher and eventually push through this mark. If that's the case, we want to see $170 act as support on a pullback. Worth mentioning is that this level is also near the 50% Fibonacci retracement for the 52-week range at $171.
If Facebook stock is able to break out, I am targeting a potential run to $185. However, should this level keep a lid on FB stock, we need to see if uptrend support and the 50-day moving average can continue pressing shares higher. If they can't, $160 is on the table. If that fails, look for a possible gap fill down to $150.
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