Facebook Inc. (FB) has been unable to clear the $200-$210 area on a number of occasions in the past, but now the charts are looking stronger with the On-Balance-Volume (OBV) line close to a new high. Are we ready for a breakout? Let's check.
In this daily bar chart of FB, below, we can see that prices have been making higher lows since March, but higher highs have not been in the cards after April and July. Things have improved in the past two months. FB is now trading above the rising 50-day moving average line and the rising 200-day moving average line. The On-Balance-Volume (OBV) line has been strong since early October when the broad market began to strengthen. The OBV line is now very close to breaking out to its own new high. The Moving Average Convergence Divergence (MACD) oscillator broke above the zero-line in late October for a fresh buy signal.
In this weekly bar chart of FB, below, we can see a bullish setup. Prices are trading above the rising 40-week moving average line. The weekly OBV line is at a new high for the move up foreshadowing, I believe, new price highs. The weekly MACD oscillator is crossing to the upside for a fresh outright go long signal.
In this first Point and Figure chart of FB, below, we can see a nearby price target of $211 being projected. This would be a new high, but nothing to really write home about or should I say share on Facebook.
In this second Point and Figure chart of FB, below, we used weekly close only price data and we can see a longer-term potential upside price target of $329.
Bottom line strategy: I don't know what news will push FB up through resistance in the $200-$210 area but it looks like FB is set for an upside breakout. Risk a close below $189 for now.
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