We’re getting some choppy price action to start the week, with the stock market gapping higher and rolling over out of the gate.
The S&P 500 has declined for five sessions, and if the bulls aren’t careful, Monday could make it six.
The stock remains a hair off its all-time high at $384.33, while it continues to sport a market cap north of $1 trillion.
Despite some negative developments, Facebook stock continues to chug higher. Are new all-time highs in order?
Trading Facebook Stock
Facebook stock ripped to all-time highs earlier this month. After that impressive push, the shares put in an inside week last week.
While the S&P 500 is still within 2% of the all-time high, many individual stocks are performing much worse. Not Facebook, though.
That inside week after a solid rally could act as a consolidation phase, setting Facebook stock up for another push to the upside.
Aggressive longs may consider buying Monday’s dip down into uptrend support and the 10-day moving average. However, keep last week’s low in mind at $373.15.
A drop below this level that isn’t quickly reclaimed could set up Facebook for a weekly-down rotation, potentially putting the 10-week and 50-day moving averages in play near $365.
On the flip side, let’s see if Facebook can hold current levels and rotate over the $385 area. If the market gets any sort of relief rally in the next few days, Facebook could certainly enjoy some strength.
Over $385 puts Facebook at new highs and opens the door to the $396 to $401 area. There it finds the 161.8% extension of the current range and the 261.8% extension of the longer-term range.
In either scenario, keep the rotations in mind. Above $385 is bullish and below $373 could open the door to a fresh buy-the-dip opportunity.