Facebook Under Selling Pressure

Facebook FB shares are trading lower by $2.00 at $73.91 in Monday's session. The Street has had a muted reaction to its Q4 $0.06 earnings beat ($0.54 vs. $0.48) reported last Wednesday. Also, the company reported a revenue beat, ($3.85B vs. $3.77B). Since the release, Facebook has finding resistance at the $78.00 level, peaking at $78,02 on Thursday and $78.16 on Friday before retreating to close at $75.91. This price action confirms the upper-end of a trading range that has been intact since the end of October after the release of Q3 earnings. At the end of December it violated this trading as the broad market rally took the issue to its all-time high ($82.17) and all time closing high ($81.45). Over this same time period, Facebook has been finding support near the $74.00 level. On two separate occasions it reached the $72.00 handle. The most recent being on November 21, when it slipped to $72.51, but quickly rebounded. If that level is breached, there may not be under major support until the two Ebola induced low on October 15 ($70.32) and October 16 ($70.58).