Facebook - Technical analysis 02/26/2018

Facebook is one of these big companies with great fundamentals that each year grow. It is a stock, which you definitely could think of adding in your portfolio. But before buying it we should wait for a good price and better opportunity.

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Lets do a quick technical analysis on the price. I personally love using the pivot points as a signal and the Ichimoku cloud along with the MAs as confirmation, Before check on the pivot points of Facebook, lets confirm the trend with the upper mentioned indicators.

Currently the price is 183.29$ and looking at the daily chart, there is a nice long green candle, which closed over the cloud. This is a bullish confirmation, even when not the whole candle is over the cloud. Now lets check on the 200 MA. It is below the current price and even there is really good rebound from it. We have another bullish confirmation on the trend.

Now lets check on the pivot points. If we check on the pivot points based on the daily data, the levels will be close to each other and wont really work for a good trade. Because of this I will use the monthly levels for February.  Based on the monthly data for the last 26 days, the pivot point levels are below.

R2 R1 PP S1 S2
midpoint midpoint midpoint midpoint
210.01 203.33 196.65 189.295 181.94 175.26 168.58 161.225 153.87

Currently the price is over the PP, which is another bullish confirmation.  Looking at the pivot point levels, the midpoint between PP/S1 and S1 are great opportunities for entering a long position. Both of the levels were acting as a support and resistance and it will probably act as a support one more time.  The PP level - 181,94$, could be a good entering level as well but it is a little bit risky.

Once you choose a level to enter, the exit level should be next pivot point level or why not even the upper one.

Please note that this is my view of the market and you should trade at your own risk.