Shares of Facebook (NASDAQ:) are under pressure as the new week begins. At midday, the stock is off just over 4% as it drops to fresh May lows. This breakdown-type move, which is getting a jolt from a Citi downgrade (to ‘neutral’ from ‘buy’), is driving FB below the lower band of its 10-week bull channel. We expect more downside in the near term.
FB has left behind an ugly post- spike high as well as a divergent MACD peak. The powerful upside gap (+7.5%/$310.90) that followed the April 29th open is not attracting buyers.
Initial support is near $300.00 (March high).
Note: We have no position.
You can read Gary S. Morrow’s original post here.
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