• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing

Facebook's Weak Technical Structure Could Only Inspire a Bear

Let's check out the charts of FB today.
By BRUCE KAMICH
Jun 04, 2019 | 11:53 AM EDT
Stocks quotes in this article: GOOGL, FB

During Monday night's Mad Money program on CNBC, Jim Cramer talked about the new crackdown against tech giants like Alphabet ( GOOGL) for antitrust violations (read  here)  and increased scrutiny of Facebook ( FB)  , both of whom President Trump sees as political opponents.
 
Let's check out the charts of FB today.
 
In this daily bar chart of FB, below, we can see that the month of May has been hard on the FB bulls. Prices found some support around $180 until it broke sharply, closing below the cresting 50-day moving average.
 
A few days later FB was/is testing the declining 200-day line. The $160 support area from the lows of February and March could also give way with the $150 area the next logical target.
 
The On-Balance-Volume (OBV) line has made a new low for the move down from its late April peak.
 
The trend-following Moving Average Convergence Divergence (MACD) oscillator is below the zero line now for an outright sell signal. 
 
 
 
In this weekly bar chart of FB, below, we see some weakness. The big picture price pattern looks like a possible top or distribution pattern with a first peak around $220 followed by a second peak short of $200. Prices have weakened in recent weeks and are poised to test or break the flat 40-week moving average line.
 
The weekly volume bars look like they have contracted since last June but the weekly OBV line has only recently declined a bit.
The MACD oscillator is crossing to the downside for a take profits sell signal. 
 
 
 
In this Point and Figure chart of FB, below, we can see that prices are close to reaching a downside price target of $161, but a decline to $158.62 would be a triple bottom breakdown and could precipitate further declines.
 
Bottom line strategy: Will FB hold the $160 area and work higher from there? Maybe. But one more tweet or bad news headline could knock prices still lower. I don't feel confident about the long side of FB.
 

(Alphabet and Facebook are holdings in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells AAPL? Learn more now.)

Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

Employees of TheStreet are restricted from trading individual securities.

TAGS: Regulation | Investing | Stocks | Technical Analysis | Trading | Media | Software & Services | Technology | Advertising

More from Investing

Copa Holdings Continues to Gain Altitude: Here's My Flight Plan

Bruce Kamich
Jun 9, 2023 8:00 AM EDT

The shares have been in an upward path the past 12 months.

Bull Market Baloney, Eurozone in Recession, Squeeze Plays, Arming Ukraine

Stephen Guilfoyle
Jun 9, 2023 7:42 AM EDT

Plus, a report says the Chinese will pay Cuba billions to set up an eavesdropping station on the island.

Don't Be Misled by Headlines of a New Bull Market

James "Rev Shark" DePorre
Jun 9, 2023 7:11 AM EDT

Media stories about a new bull market based on an arbitrary definition should be a warning rather than a celebration.

Tesla's Rally Gets More Juice Thanks to General Motors

Bruce Kamich
Jun 9, 2023 6:46 AM EDT

The electric vehicle maker's stock already was trending higher and is receiving a boost from a deal with GM to use Tesla charging stations.

The Bull Is Out of the Gate

Helene Meisler
Jun 9, 2023 6:00 AM EDT

Look how quickly we got bulled up. Let's check sentiment, the surveys and the International Securities Exchange call/put ratio.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 07:19 PM EDT CHRIS VERSACE

    AAP Podcast: This Company Is Not Going 'Solo'

    Listen in as I talk with the very diversified Solo...
  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login