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Fan Yang

Facebook's (FB) Bullish Continuation is Being Challenged

Recently, Facebook $FB rallied sharply from around $160 a share to above $170 after earnings beat estimates. This rally could have triggered a bullish continuation, but it is still not clear as price retreats from a key resistance after cracking it .

Facebook Daily Chart

(click to enlarge)

- On the daily chart, we can see that there is a key resistance area around $175. 
- The moving average cluster is around here. There is also a support/resistance pivot area around here. 
- Price cracked this resistance last week, but has since retreated back below $175. 
- Furthermore, the RSI is still holding below 60, which suggests maintenance of the prevailing bearish momentum.
- So far, price action looks tentative after the breakout, but that could simply be a function of overall market sentiment, which is also tentative. 
- If price falls below $168, the bullish continuation attempt could be a failure. 
- If price holds above $170 for the most part, we can be more confident on the bullish continuation outlook.

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