WATCH Facebook approaching KEY levels
Updated
Facebook is approaching some pretty significant levels. Technically - An upward trend line that was formed in May is about to be tested again and price is moving very close to the 100-day MA on the daily chart. More significantly, this trend line and the 100-day MA are now running together, which may act as extra support. In addition, price is beginning to squeeze to form a wedge after a selling pressure has formed resistance in the form of a descending trend line after ATH in August.
Fundamentally - Federal regulators asked Wednesday for Facebook to be ordered to divest its Instagram and WhatsApp messaging services as the U.S. government and 48 states and districts accused the company of abusing its market power in social networking to crush smaller competitors, reports AP news wire. COB and CEO of Facebook Inc, Mark Zuckerberg, sold 61,350 shares of FB on 12/03/2020 at an average price of $283.95 a share. The total sale was $17.4 million. Not that uncommon, but noteworthy.
Will be worth keeping an eye on Facebook for clues on the overall tech sector.
Note
Facebook spiked lower yesterday, but appeared to be supported by the trendline as the daily candle formed a sizeable resistance wick. The move may have been a reaction to The European Commission who on Tuesday proposed two new pieces of legislation that, if passed, would compel big tech companies to take down harmful content and open up competition, otherwise they risk paying hefty fines. As a result, though, Facebook said it will shift all its users in the United Kingdom into user agreements with the corporate headquarters in California, moving them out of their current relationship with Facebook’s Irish unit and out of reach of Europe’s privacy laws. This might get interesting!
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