What we are looking at now: are Facebook shares going to dive?

Facebook shares (NASDAQ 🙂 have been slipping since the end of January, after social media giant Q4 2019 said the company exceeded sales expectations, but experienced the slowest annual sales growth in its history during the quarter amid increasing regulatory control. Traffic also fell by 8.6% in 2019 according to web analysis service SimilarWeb, while other social media networks grew.

Of course that's bad enough, but what might be the last to speed up the stock slide is a tweet broadcast last Saturday by Tesla & # 39; s CEO Elon Musk and stated: "#DeleteFacebook It's dull."

Indeed, graphs now point to a potentially more serious decline in the coming months.

The monthly candle for January 2020 is a falling star, which formed around the previous 43% drop between July and December 2018. Moreover, the recent highs in the price are accompanied by bearish differences in various indicators such as volume, MACD and RSI.

These differences indicate weakness in the upward trend, although it is still valid. Regarding the monthly demand levels, marked by blue rectangles on the graph above, the strongest demand is between 120-130.

On the weekly chart it is easier to see the strong sales pressure that started two weeks ago, after the release of the profit. The closest support due to the falling line (in blue) is around 200, where buyers might be waiting to buy the dip.

Yesterday the price fell sharply after he had filled the gap in 213 on Monday. We can also see on the daily chart that there are some potential movements around the trend line. Should the price fall below the trend line, it could go to the 194-196 area and retest the trend line from below, and then fall further to 175-180.

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