Facebook (NASDAQ 🙂 just can't take a break. But perhaps, according to some, they don't deserve that.
Even after years of accusations of user privacy abuse, along with a number of data breach scandals involving the colossus on social media, CEO Mark Zuckerberg remains surprisingly optimistic and unashamed.
The latest black spot against the Menlo Park, California-based company comes from a lawsuit filed last week by 10 US states, claiming that the company had made a pact with Alphabet's Google (NASDAQ 🙂 in 2018. , "in which Facebook did not agree. to compete with Google's online advertising tools in exchange for special treatment when using them."
Now Facebook is going after Apple (NASDAQ 🙂 and claiming that they are doing this as a way to stand up for small businesses. Interesting timing to say the least.
Zuckerberg is unhappy that Apple has given its users the choice not to track their online searches, a common device used by Internet companies to target their ads.
Facebook's position is based on a Deloitte study that found that small business advertisers would, on average, lose more than 60% of their sales relative to their ad investment without targeted placement. Additionally, Facebook claims that while an opt-out feature will also hurt their earnings, they really only stand up for small businesses that will be devastated by the move.
The Electronic Frontier Foundation, a digital rights nonprofit organization, "founded in response to a fundamental threat to speech and privacy," stands behind Apple, saying, "Facebook's laughable campaign" is truly anti-users and small . businesses.
The antitrust lawsuit and what appears to be a renewed wave of investor aversion to the company's latest high-profile but questionable tactics seem to be sparking a selloff.
Monday, Facebook dropped below its tight upward reach, forming a rising flag. That's bearish after the previous 6% slump within four days, which also range followed.
The flag allowed new sellers to enter, skimming off demand from previous sellers. The negative outbreak showed that sellers would go lower to find buyers.
The trading range also gave bears a chance to regroup and expand a march that got another bearish stronghold – the 100 DMA – for the first time since April 29. The moving average draws a natural neckline to an H&S continuation pattern, indicating that the 18% drop from the Aug. 26 record to the Sept. 23 low. had just prevented the 20% drop needed to say the stock had entered a bear market.
However, the implied goal of the $ 28 dollar pattern brings the price face-to-face with the 200 DMA and shows us how the forces of supply and demand worked in harmony as the 100 DMA passed the ball to the 200 DMA.
The larger MA could very well provide a support, which would be crucial because if the price falls below the Sept. 21 level of $ 244.13, it will have seen a downtrend, with a downward series of peaks and troughs.
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FB Daily Chart, wider version
If the 200 DMA were no longer in support, Facebook could complete a larger H&S summit from its June 29 low of $ 207.11.
Note how the long neckline of this larger, tapered neckline of H&S tops fits perfectly with the current smaller H&S follow-up pattern, as the 100 DMA coils wrap around it. In this way we identify the various technical bottlenecks and see how all forces of supply and demand come together.
Note: The short term trend is still ongoing until the price falls below the Nov. 23 low of $ 264.55. The medium trend is set to decline after falling below the September 18 low of $ 244.13.
Trading Strategies
Conservative traders would wait for a new downtrend in the medium term before attempting to short stocks.
Moderate traders are likely to shorten shortly after the short-term trend is established.
Aggressive traders will now go short after completing both a bearish flag and H&S, provided they understand and accept the risk of a whiplash and have an informed plan to commit to.
Here's an example:
Trade Sample
Entry: $ 275
Stop Loss: $ 280
Risk: $ 5
Target: $ 245
Reward: $ 30
Risk: Reward Ratio: 1: 6
