Facebook (FB)  recently uncovered $100,000 in fake ad spending tied to Russian operatives. Will investors accept an apology its CEO has been dishing out?

Based on the deteriorating technicals on Facebook's weekly chart, investors appear poised to reduce holdings on a potential drag on advertising dollars in the quarters ahead.

Shares of social-media giant Facebook could see a technical downgrade on its weekly chart as investors react to the knowledge that some 10 million people were exposed to Russian-backed Facebook ads that attempted to influence the 2016 presidential election.

Congressional investigations will soon be underway by three separate committees, and includes the details of some 3,000 ads that were paid by Russian entities to influence the election.

Facebook founder Mark Zuckerberg is amid this controversy. Just after the election, Zuckerberg questioned the validity of these claims, and now he is being apologetic.

To prevent future interference, Facebook plans to hire about 1,000 employees to review and change its global advertising systems to prevent election meddling abuse.

Shares of Facebook have been immune to these allegations. The stock closed Monday at $169.47, up 47.3% year to date and in bull market territory, 49.2% above its post-election low of $113.55 set on Nov. 14. The stock has been moving sideways to down by 3.4% since setting its post-election, all-time intraday high of $175.49 on July 27.

Weekly Chart for Facebook

Courtesy of MetaStock Xenith

Facebook has a positive but overbought weekly chart with the stock above its five-week modified moving average (in red) of $169.00. The stock is well above its 200-week simple moving average (in green) at $102.68.

The 12x3x3 weekly slow stochastic reading is projected to end this week at 80.82 down from 82.66 on Sept. 29, but still above the overbought threshold of 80.00.

If Facebook ends the week below the five-week modified moving average of $169.00, the stochastic reading will likely be below 80.00, which would downgrade the weekly chart to negative.

Investment strategy: Buy weakness to my semiannual value level of $150.17. Reduce holdings on strength to my quarterly risky level of $179.24.

More of What's Trending on TheStreet:

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.

More from Stocks

Kohl's Slumps on Tuesday Amid Weak Guidance, Retail Selloff

Kohl's Slumps on Tuesday Amid Weak Guidance, Retail Selloff

Chart of the Day: Is Kohl's a Playable Stock on a Pullback?

Chart of the Day: Is Kohl's a Playable Stock on a Pullback?

Tuesday Turnaround: This Market Is Un-Bear-Able

Tuesday Turnaround: This Market Is Un-Bear-Able

Federated Investors Stock Is Set to Change Direction

Federated Investors Stock Is Set to Change Direction

Market Movers: Federal Reserve Review

Market Movers: Federal Reserve Review