Facebook Inc. (FB) is our Stock of the Day on Real Money as President Trump trashes bitcoin and cryptocurrencies and says in a tweet that Facebook may need a banking charter to launch Libra, its version of cryptocurrency. Let's check out some simple charts and indicators and ignore the new technologies.
In the daily bar chart of FB, below, we can see that prices just made a slight new high above $200 but trading volume did not expand significantly. A breakout without seeing volume confirm the move is always suspect. FB is above the rising 50-day average line and above the recently positive 200-day moving average line.
The On-Balance-Volume (OBV) line looks like it has made a slight new high and the Moving Average Convergence Divergence (MACD) oscillator is in a bullish configuration above the zero line.
In the weekly bar chart of FB, below, we can see a mixed picture. Prices are above the rising 40-week moving average line. There is resistance from last year in $200-$220 area.
Trading volume has been declining since August and the MACD oscillator turned up again after flirting with a take profits sell signal.
In this Point and Figure chart of FB, below, we can see a potential upside price target of $213. Not far away and also not a new high either.
Bottom-line strategy: A close Friday below $200.21 will be a short-term sell signal (a close below the low of the high day).