FB Facebook 30-Minute Chart Rising Wedge Overbot Negative Divergence

The 30-minute chart provides an update for the Faceplant debacle. Note the 8 MA crossing above the 34 MA on 6/7/12 that signaled the all-clear for the upside. The thick green bars show the textbook inverted head and shoulders (H&S) pattern. The head at 25.5 and neck line at 29.5 is a difference of four, thus, the target is 29.5+4 = 33.5, and price printed this top satisfying the pattern. Note the double top in place now and with the matching high in price, the indicators are all negatively diverged. Looking over the last week, a red rising wedge has formed, the stochastics are overbot, the other indicators are coming off of overbot, and most importantly, the red lines show the negative divergence now in place. All of these indicators are bearish. Price should receive a smack down now and the 31.5 support is a logical intial downside target. The red circles show the indicators making lower lows so price needs to come down to test the price low at 31.5.

The 8 MA and 34 MA cross performed a stutter-step over the last couple days and with the 8 above the 34 now that is bullish, but, watch this cross closely since if the 8 crosses under the 34, the path downward is in place. Projection is a roll over in price from these levels with intial target at 31.5, then a trip lower to back test the neck line break out at 29.5. This information is for educational and entertainment purposes only.  Do notinvest based on anything you read or view here. Consult your financial advisor before making any investment decision.