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Buying or Shorting Facebook (FB)? Technical support & resistance

November 20, 2020 22:12
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facebook,

Have you been thinking about going short in Facebook or to buy shares? Here, we discuss the latest important news connected with Facebook and how to trade this stock. Facebook, Inc. is focused on building products that enable people to connect and share through mobile devices, personal computers and other surfaces. The Company's products include Facebook, Instagram, Messenger, WhatsApp and Oculus.

Facebook shares has advanced from $208 above $300 in less than six months and the current price stands around $271. US stocks set a record this week after biotech group Moderna lifted global markets with trial data that showed its coronavirus vaccine was highly effective. The announcement that Moderna’s vaccine is 94.5% effective sent some stock at record highs with energy and financial stocks leading gains on both sides of the Atlantic.

Travel stocks also benefited with shares in the biggest US airlines up around 5% but technology stocks like Facebook didn't advance too much. Facebook is an example of how a good company can be expensive stock for investors. The fundamentals of the company are good but with a 774 billion USD market capitalization, this share price is too expensive in my opinion, says technical analyst Stanko. The US stock market is easily affected by unpredictable events and there will be certainly lots of opportunities for shorting this stock, but also for buying on any dips. You can go ahead and trade Facebook here!

Facebook, Inc. logo

Company Name: Facebook, Inc.
“Going long or short in FB shares? Discover today's prices for FB shares and find out where to trade it.”
Ticker: FB
Primary Exchange: NASDAQ
Latest price: 275.59
p/e Ratio: 31.09

How to buy Facebook shares?
You can invest in Facebook shares in many ways. One of the most modern techniques include CFD's, where you get 5x leverage on your purchase. For buying Facebook stocks, you can try Skilling.

How to short Facebook (FB)
Short selling the Facebook stock is basically betting against Facebook and when you short the FB you are expecting the price to go down instead of up. So you can make money when the price goes in the opposite direction and for those with great skill is a way to make some good money. One of the easiest ways to short Facebook is through a margin trading platform. Many brokers allow this type of trading, with margin trades allowing for investors to “borrow” money from a broker in order to make a trade. It's important to remember that there may be a leverage factor, which could either increase your profits or your losses.

Rating: 9.57/10
Minimum deposit: €100
Description: Ready to go short or long in Facebook shares? Try with Skilling now!
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It’s not a good idea to hold a short position for long periods of time or to leave an open short position with no stop-loss order. Many exchanges allow margin trading but it is very hard to say which platform is the best because this depends on the experience and habits of each investor/trader. Another way to short Facebook is to sell this stock at a price you feel comfortable at, wait until the price drops, and buy the Facebook stock again. Facebook is an example of how a good company can be expensive stock for investors and there will be certainly lots of opportunities for shorting this stock.

Technical analysis
The price of Facebook stock currently stands around $271 and at this value, the total market cap of Facebook is around $774 billion.

Facebook graph

On this chart (the period from December 2019), I marked current support and resistance levels that can help traders to understand where the price could move. The more often price tests a level of resistance or support without breaking it, the stronger the area of resistance or support is. When the price passes through the resistance, that resistance could potentially become support. Facebook stock remains in the „bullish phase“ and if the price advances again above $280 the next resistance could be located around $290 or even $300. The current support level is $260 and if the price breaks this level it would be a “SELL” signal and we have the open way to $250. If the price drops below $240 which represents very strong support, the next target could be located around $220.

Conclusion
US stocks set a record this week after biotech group Moderna lifted global markets with trial data that showed its coronavirus vaccine was highly effective. Facebook has advanced from $208 above $300 in less than six months and the current price stands around $271. Facebook is an example of how a good company can be expensive stock for investors. The fundamentals of the company are good but with a 774 billion USD market capitalization this company/stock is too expensive in my opinion. The current support level is $260 and if the price breaks this level it would be a “SELL” signal and we have the open way to $250. If the price drops below $240 which represents very strong support, the next target could be located around $220.

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Risk warning: 75% of retail investor accounts lose money when trading CFDs with etoro.