Face(IAL)book Recognition:

As the big behemoths, more specifically the former FAANG names, are trying to rebound from some serious, recent technical damage, ones chart is being recognized for its poor behavior. All of the last four letters in the above acronym, are above their 200 day SMAs, except one, Facebook. A few weeks back we had the name on watch, to see how it would respond to the upside gap fill from the 1/29 session. It was filled in almost precisely on 2/20 and has been on a steep, downward trajectory ever since. The stock CLOSED below its 200 day SMA, 5 of the last 6 days, and the lone exception on 3/2, looks to have been a bear trap. It is quickly approaching the lower end of the bullish engulfing candle recorded on 2/28, and lows for that day should be considered a hard stop on a CLOSING basis. This name should not be considered a bellwether at all, and if it were to break I do not believe it would be a catalyst for a weak stance in a NFLX for example. But FB bulls should be less sanguine by the day.

This article requires a Chartsmarter membership. Please click here to join.