Facebook Stock To $150? Here's What The Chart Says

Facebook, Inc FB briefly lost Tuesday’s low on Wednesday but had popped back up by late morning. The stock was beaten down almost 20%, from its Sept. 1 all-time high of $384.33 until Facebook found a bottom on Oct. 28 and bounced.

The two-months long downtrend can be attributed to traders and investors fearing whistleblower Frances Haugen’s testimony before the senate could end with legal repercussions for the social media giant. For technical traders, Facebook created a bearish double top pattern at its all-time high, which indicated a downtrend was likely to follow.

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The Facebook Chart: On Oct. 28, Facebook hit a low of $308.11 and bounced after the company announced it was rebranding itself as Meta Platform, Inc. The stock then soared about 8% higher over the following four trading days to reach a high of $334.79, which allowed Facebook to partially fill a gap left behind on Oct. 22.

On Wednesday, the stock fell to the $323.30 mark but the lower price was needed because it allowed Facebook to print a lower high on the daily chart. Prior to the lower high being printed, it wasn't possible to confirm that Facebook had made trend change to the upside.

Facebook’s rise off the bottom, paired with the higher low, has also created a bull flag pattern with the pole formed between Oct. 28 and Nov. 2 and the flag created on Tuesday and Wednesday. If the pattern is recognized and Facebook breaks up bullishly from the pattern on high volume, the measured move could push the stock up toward the $150 level in the future.

There is still a partial gap left above on Facebook’s chart between $334.79 and $337.80. Gaps are completely filled about 90% of the time, which indicates Facebook will trade up to fill the range in the future.

Facebook is trading pinned between the eight-day and 21-day exponential moving averages (EMAs), with the eight-day EMA trending below the 21-day, both of which indicate indecision. The stock is trading below the 50-day simple moving average, which indicates longer-term sentiment is bearish.

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• Bulls want to see big bearish volume come in and boost Facebook up from the bull flag pattern, which will allow the stock to make a higher high to continue the uptrend. The stock has resistance above at $333.78 and $338.64.
• Bears want to see big bearish volume come in and drop Facebook down below the $324.50 level, which would cause the stock to support of the eight-day EMA. There is further support below at $113.27 and if the stock were to fall below the level it could lose the $308.11 zone, which would negate the uptrend.
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