F-BOOK, Trading In Overbought Conditions, Reversal Awaiting!

Hello Traders Investors And Community, welcome to this analysis about the recent events in FACEBOOK, the current price-structure, and what we can expect the next day and hours. The last weeks FACEBOOK provided an exceptionally huge uptrend making gains and formin a new all-time-high at the 240 level despite the corona-crisis which hit the markets hard on the bearish side we saw a recovery and now FACEBOOK made almost 75 % which is a good balance for the still ongoing crisis. But the trend is weakening at the moment and a correction is within its starting holes, there are some important structural elements for traders who are looking to trade something on the short-side therefore we are watching the locally 4-hour timeframe.

As you can see in my chart the stock is currently trading near its all-time-high and within a decent overbought price-level, the last time we have already seen the first bearish signs to the downside testing the still remaining support level we have at the 30-EMA you can see marked in black and its coherent uprising-support-line you can see marked in blue, these two levels building a logical support-cluster for a short-term-support but as the market is heavily overbought the support can break to the downside when this happens as you can see in my chart the possibility for bearish pressures increases as the stock is heavily overbought and minimum a correction will be definitely possible.

When the bearish scenario sets in and the stock crosses the first support line to the downside there will come to a decline to the next important support zone which is the second uprising-trend-line and its counterpart the 200-EMA which is marked in orange at my chart when this trend-line and support does not hold we will see further decline overall firstly to the 61.8 % Fibonacci-support in my chart and when we do not get a solid reversal sign in this level as it is significant support we will visit the 50 % Fibonacci-support next, these two levels can be indicators for a possible bullish reversal to the upside from which the uptrend can continue, so it will be highly interesting how the prices act in these levels.

Although the whole stock market is struggling to form a serious, FACEBOOK is one of the gainers in past weeks corona-crisis events happening worldwide, this can also be connected to the fact that many people had to stay or staying at home due to massive lockdowns and the digitalization boom this had brought to the surface. In today's globalized world more and more people want to connect via social networks to stay updated so it is just logical that the stock falling into this category and making gains. If this trend continues and how during the still ongoing corona-crisis will be shown the next weeks and months but it is within the high possible spectrum that demand in digitalization will increase further.

In this manner, thank you for watching, support for more market insight and all the best!
Comfort and prosperity have never enriched the market as much as adversity has.

Information provided is only educational and should not be used to take action in the markets.