Shares of Facebook, Inc. (NASDAQ:FB) took a hit in the wake of the data privacy scandal, and they’ve been bouncing around ever since. While the furor over the controversy appears to be dying down, technical signals in the stock’s chart are making traders and analysts apprehensive about what’s around the corner.
Marketwatch has the details on what Facebook chart watchers have their eyes on.
Although history might suggest the “death cross” that has appeared in Facebook’s stock chart Monday is more bullish than bearish, a number of technical signals have appeared to suggest this time will be different, and bears will win out.
A death cross refers to when the 50-day moving average crosses below the 200-day moving average. Many chart watchers believe it marks the spot a short-term decline morphs into a longer-term downtrend.
Facebook is already technically in a bear market, as share prices have dropped 20 percent from its record closing price of $193.09 back on February 1. That said, analysts are still having trouble putting their finger on which way the winds are blowing for the stock, as there has been a ton of volatility in share prices since the scandal broke.
Patterns that have emerged in Facebook’s chart are adding to the confusion, and all eyes will be on key resistance levels for some sort of confirmation on the future trajectory of share prices.
Facebook, Inc. Common Stock shares rose $0.78 (+0.47%) in premarket trading Monday. Year-to-date, FB has declined -6.77%, versus a -0.24% rise in the benchmark S&P 500 index during the same period.