The news headlines in recent months on Meta Platforms (FB) (a.k.a Facebook) have been hard on investors. In its history of just 18 years the social media giant saw a fall in its daily users, as half a million users stopped using it toward the end of the year 2021. FB has disappointed analysts and investors in recent quarters and the stock slumped Tuesday on the heels of Snap's (SNAP) disappointing numbers.
Let's check on the charts and see how the indicators are moving.
In the daily Japanese candlestick chart of FB, below, we can see that the shares turned sideways the past three months. Buyers have been attracted in the $180 area in March, April and now. The daily On-Balance-Volume (OBV) line has been steady in the past three months, which is a shift from the pattern of aggressive selling in prior months.
The 12-day price momentum study shows higher lows from February to April to May and that can foreshadow a rally in the days and weeks ahead. Today's candle could be a doji or a spinning top and tells us that buyers and sellers are in balance. A bullish candle on Wednesday can tip the balance.