Navigating Facebook's Precarious Technical Setup

During late November into early December, Mike Paulenoff became increasingly concerned about the price behavior of Facebook (FB).
The stock not only was grossly underperforming the NDX but also was in the news constantly in an unflattering light regarding its leader, Mark Zuckerberg, and censorship accusations. Since early November, the NDX is up about 10%, while FB is unchanged.
More recently, on the morning of Dec 15, Mike alerted MPTrader members to the precarious technical setup in FB, writing: "FB is pressing on key nearest support at 269-270, which if violated and sustained will point to a confrontation with more consequential support at 264.50-265.00."
This past Tuesday FB got down to that very support level, reaching a low of 264.63.
In his Dec 15 alert, Mike had noted that a break below that level would trigger downside projections to 248-244.  He continues to maintain that FB, which closed pre-Christmas at 267.01, must contain any forthcoming weakness to avert a technical break that has the potential to morph all of the price action since mid-August into a consequential top formation.
On the other hand, perhaps bullish seasonal expectations into year-end will put a floor under FB into early January?  Keep an eye on resistance at 280.50, above which FB's downside technical set-up could be neutralized.
Join Mike and our MPTrader members as they navigate the twists and turns of FB, and many other stocks, ETF, indices, and commodity markets into year-end and as we enter 2021.

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