5/27/2018 – Facebook’s Stock Chart Patterns
There has been a lot of criticism of my Facebook (FB) "retirement holdings" lately, and some of it rightly so.
Facebook (FB) is the "new cigarette" according to some analysts. Other analysts cite the amount of time that people spend on the Facebook (FB) app as a problem with social behavior.
The image from Hagens Berman is a notification I received from them. It identifies a class-action suit that they intend on filing or may even have filed already.
So what affect does all this negative criticism have on Facebook's stock chart patterns? This article will take a look at Facebook's stock chart patterns that appear to be developing on its charts. If any chart patterns are identified, I will calculate price targets for the pattern whether it is bullish or bearish.
Facebook's Stock Chart Patterns (FB)
This first chart is a 20 year monthly candlestick chart. Facebook has not been a public company that long so this chart captures its entire chart history. Its actually a 7 year monthly candlestick chart. FB's price history as a public company starts in May 2012.
In general, I prefer to use monthly candlestick charts to look for longer-term trends for share prices.
This chart shows a Trading Channel that I have been monitoring. I first discussed FB's share price breaking out of its Trading Channel in this previous article "Quick Hits 9/1/2016 – Monthly Candlestick Chart Review".
After breaking out of the Trading Channel in September 2016, FB's share price has pulled back and retested the upper trendline from the Trading Channel. It appears that all the negativity in the last few months was exactly what FB's share price needed for the pullback.
Other 3 Year Trading Channel Breakouts
For some of the "original" Trendy Stock Chart members, they may remember my website's very first article. The article was for 3D Systems (DDD). I talked about an upside breakout from a 3 year channel and significant gains ahead. It was a perfect way to start off the website by nailing that call. DDD went on to more then double in the next couple of months.
Another 3 year channel breakout was for Apple (AAPL). That breakout for Apple (AAPL) also lead to more than a double in a very short period. Matter of fact, I used the 3D Systems Trading Channel breakout as a blueprint for Apple's breakout with great success.
Unfortunately, neither of those 2 previous article are available for reference. When I switched web host providers in October 2016, I lost all history from the prior 3.5 years. I still have the old data saved and someday hope to have it restored so all Trendy Stock Chart articles are available. I've made some great calls in the past I would like to reference again.
So now that Facebook's share price has re-tested the breakout, what could be some upside target prices? Let's calculate some next.
Long-Term Upside Price Targets
On the first chart above, I placed a Fibonacci Extension Tool on FB's breakout from and pullback to the top of the Trading Channel. As most Trendy Stock Chart members know, the Fibonacci Extension Tool is one of my favorite tools for calculating price moves.
While the …....
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I look at some pullback areas to begin building a position in the stock. Long-term upside price targets are also calculated for Facebook's (FB) share price.
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