Let’s take a look at Facebook (FB) & its consolidation activity that has been taking place. This consolidation activity started after Facebook’s most recent earnings report. Its share price gapped up to new highs after reporting earnings and its share price has been consolidating in a sideways movement since.

Let’s review some charts to see what might be going on in the future for Facebook’s share price.

Facebook (FB) & Its Consolidation

This first chart for Facebook (FB) is a 5 year monthly candlestick chart. This 5 year monthly candlestick chart will provide a longer-term view of Facebook’s share price activity.

While Facebook’s share price has been consolidating the last couple of weeks, the MACD Histogram shows that buying momentum is continuing to increase. And since this is a monthly chart, the MACD Histogram buying momentum represents long-term momentum.

At the MACD Histogram’s previous peak in February 2014, Facebook’s share price closed the month at $68.46. As the buying momentum continued to decline over the next year, Facebook’s share price still rose and hit a high of $86.07 in March 2015 before consolidating for a couple of months.

One more good earnings report before years end and Facebook’s share price will be over the $[s2If !current_user_can(access_s2member_level1)]……

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After discussing the current consolidation period for Facebook’s share price, I calculate long-term upside price targets.

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)]200 price level.

The gray shaded box is sandwiched between 2 high percentage Target Lines from Fibonacci Extension Tools. The gray shaded box does have a 10% range though. Trying to maximize any profits usually requires monitoring at the end of the uptrend.

FB – Moving Averages

This is a 1 year daily candlestick chart for FB to analyze its share price activity from a shorter-term perspective using moving averages.

Facebook (FB) wrestled back control of its 20 Day moving average today. It spent a little time under it during its consolidation since earnings. Other than that, there is nothing alarming on the chart to note.

The next re-test of the 50 Day moving average is going to be an interesting one.

Facebook (FB) & Its Consolidation – Summary

Facebook (FB) & its consolidation appear to be very normal. There was some profit taking after another quarter of stellar earnings. The last 2 days shows that Facebook’s share price is on the move again. Long-term start thinking about Facebook in the $200+ club.

Whenever a stock you own is forming a consolidation area, take notes of the price range. While Facebook’s share price may still break to the upside, a trip back to a previous consolidation area is never out of the question. Knowing where that area is can help to boost your returns. Mark the $165 area as one of Facebook’s support areas for the future.

Stay long and stay strong!

On deck: Kroger (KR)

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