3 Charts That Show Facebook Is In For More Downside

VantagePoint Trading Software is a forecasting tool that uses both end of day data and artificial intelligence to provide traders a forecast of market movement. These forecasts are 1-3 days in advance and help traders improve their timing on making trades and maximizing profit potential. The artificial intelligence software forecasts market movement for stocks, futures, forex, ETFs, and cryptocurrencies. 

The VantagePoint Trading Journal On Facebook

Facebook Inc FB is on pace for its worst week since the week of Oct. 31, 2016. As of this writing, the stock had fallen over 12 percent since last Friday's close, stemming from data privacy concerns brought on by British research firm Cambridge Analytica. 

And it doesn't look like it's getting any better over the next few days, at least as far as Facebook shares are concerned. Below are three charts that predict Facebook's performance over the next one, two, and three days. Let's break each of them down. 

One Day Chart

The chart below shows a one month chart of Facebook, with each candle representing one day of trading. Notice there was a major pivot point on March 16. The was the day the blue line—in this case, a one day predicted moving average—crossed below the black line—a simple 10-day moving average. 

That crossover is a major bearish signal and indicated the stock was entering a bearish trend that would last at least the next 24 hours. Sure enough, that's what happened. 

On Monday, the red-green bar at the bottom of the chart turned from green to red. That's a Neural Index that indicates near-term weakness and served as a confirmation that the bearish trend was happening. 

Two Day Chart

This chart is pretty similar, the main difference being that the blue line forecasts the predicted moving average two days out. This downtrend isn't quite as pronounced, but it's still clear as day. As long as those two lines do not cross, and they've only diverged further this week, the downtrend remains intact. 

Three Day Chart

Looking three days out tells the same story but a little less extreme. The blue line on this chart shows where FB's moving average will be 72 hours in advance. So based on Thursday's candle, it's predicting the 10-day moving average will be just below $174 on Tuesday.

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