Facebook (FB) Uptrend Resumes
As a Facebook (FB) shareholder, I was pleased to hear that Snapchat (SNAP) in its IPO filing has seen slowing growth already. They should have sold out to Facebook when Mark Zuckerberg offered to buy them out before going public over a year ago.
We will see how the market responds to slowing user growth for Snapchat when they finally start trading under the ticker symbol SNAP. Here is a first that I am aware of – SNAP shareholders will have absolutely no voting right on anything. Nothing. Owners make all the significant decisions.
Like I said, it will be interesting to see how the market reacts on their IPO with these issues as they are coming public. In the meantime, Facebook (FB) shareholders rejoice!! The uptrend continues. Let’s analyze it and look at where some overhead price targets may lie.
Facebook (FB) – 5 Year Chart
For the purpose of looking at upside potential for Facebook’s share price, I will use my standard Fibonacci Extension Tools for price targets. Facebook (FB) is a growth stock that is not over-valued by any means based on its growth and monetization rate.
I usually try to clean up the chart a little bit, leaving the more prominent targets on the charts for discussion purposes. But with the markets at all-time highs, it is important to take as many different price targets from different tools into consideration. When the markets are at all-time highs, basically you are navigating in uncharted waters.
I have been navigating the rough waters for Facebook (FB) since the $26 area as all original Trendy Stock Chart members know. I continue to hold onto those shares with a tight grip. After all, they are my “retirement fund” as I have often referred to them.
This first chart is a 5 year monthly candlestick chart for Facebook (FB). Like I said, it looks pretty cluttered. Sorry. But after you take a look at it, I will discuss what I see in the chart.

Analyzing a 5 Year Monthly Candlestick Chart Using Several Different Fibonacci Extension Tools to Look for Confluence Areas
With almost neutral momentum on the weekly MACD Histogram indicator, you have to switch[s2If !current_user_can(access_s2member_level1)]….
If you want to continue reading this article for Facebook (FB), you must first login. I look at upside price targets for Facebook’s share price using some Fibonacci Tools. I also look at some areas where its share price may see resistance along the way.
If you are not a Trendy Stock Charts member, consider joining today! There are several different subscription plans available.[/s2If][s2If current_user_can(access_s2member_level1)] views to try and gauge momentum. Since the weekly chart does not provide information, switch to a daily or a monthly view, or both.
FB – $18 Candlestick
There is very simple test that I do at times for stocks. It is a very easy visual test. Pull up that same 5 year monthly candlestick chart. But remove all the trendlines, tools, etc. Start with a blank slate. Then look at the larger candlesticks on the chart. Get a feeling for the largest moves that the stock tends to make.
I’ve printed the range for most of the larger candlesticks on this 5 year chart for Facebook (FB). As Facebook’s share price continues to rise, so do the average size of the larger candlesticks.
Overall buying volume is decreasing. That does not give me hope for an extended breakout unless that starts to change in February and March 2017 with increased buying volume when compared to January 2017.
Getting back to the size of the candlesticks. Knowing the maximum size of a stocks move in a month’s time can alert you to some short-term profit taking and repurchase possibilities. Try this technique on one of your stock holdings. Now back to Facebook (FB).
The higher Facebook’s share price can close this month above the Bearish Engulfing candlestick pattern from November 2016, the better. It would also be better to see its share price move higher on buying volume that exceeds January 2017. As the Njarian brothers like to say on Fast Money…..giddy up!!
FB – Moving Averages
This is a 1 year daily candlestick chart to analyze Facebook (FB) from a moving average perspective. All of its moving averages are in alignment in ascending order. Or is it descending order? I always get that confused on my spreadsheets. Whatever. They go from smallest to highest in order. There.
That was Facebook’s first test of its 200 Day moving average since the beginning of 2016. Some possible anticipated price action for FB? Maybe a push up to or slightly above the 261.8% Target Line and then a pullback to either the 20 Day or 50 Day moving average.
FB – 5 Year Daily Chart
I used a 5 year timeframe for this next chart. I also used daily candlesticks during the 5 year timeframe. That allows me to keep the moving averages on the chart so we can see all the previous pullbacks to the 200 Day moving average as Facebook (FB) uptrend resumes.

Look at the Resistance Facebook’s Share Price Saw at Each Major Target Line from This Single Fibonacci Extension Tool
The MACD Histogram on both the monthly and daily charts are almost neutral. The weekly MACD Histogram for Facebook shows buying momentum that is increasing if you look it up. So there is 1 out of 3 bullish views for the ACD Histogram.
Facebook (FB) – Summary
With overall buying volume that is decreasing and trending downwards, new positions in Facebook take on additional risk at these levels.
Any pullback to the $126 to $129 area could be an area to jump on Facebook’s uptrend, as long as the pullback develops on selling volume that is normal or preferably lighter than normal trading volume. With a continued breakout above its previous high, Facebook’s share price could see the $150 mark by the end of February. You could also use a pullback to the 50 Day moving average to try and jump on the uptrend.
Unless the buying volume starts increasing as noted above during this breakout, the $150 area may be the temporary top of the uptrend. If buying volume can continue to increase over the next 2-3 months, I would love to see FB’s share price around the $175 – $180 area in 6 months. By closely monitoring the upside targets for the NASDAQ Composite on the article I published earlier this evening, I think that will give earlier indications of weakness than Facebook’s chart.
But first things first. Facebook has to close out February 2017 above the resistance area from the Bearish Engulfing candlestick pattern. If it can do that, dare I say the $150 and possibly higher price targets are lurking? If it does, it will be important to also look at the volume associated with the close. Stay tuned for that update. Until then, enjoy the ride.
I did mention that I would like to travel some in retirement…….did you hear that Facebook?! Help out Joe and his retirement Fund…
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