Stock of the day: Facebook
20 September 2024
Yesterday was a strong session for Facebook, as the stock surged nearly 4% to reach $559. From a technical perspective, this move is significant because it confirms a breakout from an ascending triangle pattern. The pattern was characterized by a red uptrend line serving as dynamic support and a yellow horizontal resistance level that had been in place since early July. This resistance was tested again at the end of August and was decisively broken yesterday.
With the price now above the yellow resistance line and maintaining support from the dynamic green trendline, this is a strong buy signal, reinforcing the long-term positive sentiment for Facebook and Meta Platforms. As long as the price remains above the yellow support, the outlook remains bullish. A drop below this support would indicate a false breakout, potentially signaling a sell, but the likelihood of that scenario is currently low.