The market averages are soaring Tuesday so we need to ask whether Facebook, Inc. (FB) made a durable low. Let's see how many of our friends like the idea.
In the daily Japanese candlestick chart of FB, below, we can see how the stock price plunged rapidly from January. Prices made a lower high in February and then gapped lower near the end of the month. The slope of the more responsive 50-day moving average line is negative and so is the slower-to-react 200-day moving average line.
The trading volume has surged the past five to six weeks, which tells us that traders and investors have been active. In the middle of all this volume we may have seen a shift from weak hands to strong hands. The On-Balance-Volume (OBV) line has declined from the middle of February but not as much as I would have expected. That is another way of saying that prices may have fallen more of their own weight than from aggressive selling.
Moving Average Convergence Divergence (MACD) oscillator is in bearish territory but has narrowed toward a cover shorts buy signal.
