Facebook (FB) is going to release its quarterly numbers on Thursday and not Wednesday. Let's check out the charts and indicators today.
In this daily bar chart of FB, below, we can see that prices have been in an uptrend from the March nadir and have made new highs since late May despite what appears to be a string of negative news stories. Prices have tested the rising 50-day moving average line at the end of June and recently.
The On-Balance-Volume (OBV) line has dipped slightly in recent days and the Moving Average Convergence Divergence (MACD) oscillator has weakened further and is close to the zero line.
In this weekly bar chart of FB, below, we can see that prices broke out on the upside of a long sideways consolidation pattern. Prices are above the rising 40-week moving average line.
The weekly OBV line shows a rising pattern the past three years and strength from the March low. Whatever short-term traders think of FB it does not seem to show up in this weekly chart.
The MACD oscillator is well above the zero line in bullish territory. There has been some recent narrowing in this indicator but it looks like it will be a long time until we witness a bearish crossover.
In this daily Point and Figure chart of FB, below, we can see a bullish pattern to the trading and a potential upside price target in the $331 area.
Bottom line strategy: FB is loved by many and also has plenty of detractors. Advertisers can put their hands on their hips and take symbolic stands but they cannot ignore that this is the place to reach customers. The charts and indicators suggest that prices can move higher from here. Trade from the long side risking a close below $220.
(Facebook is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells FB? Learn more now.)
