Facebook (FB) – Get a report climbed to new highs early Wednesday morning, hitting an all-time high of $ 315.88.
Stocks were down from those highs and fell roughly 0.5%, although the tech-savvy Nasdaq was up roughly 1%.
Is Facebook helping lead FAANG? Microsoft (MSFT) – Get a report is also at new heights, which is unsurprising from the charts, while Amazon (AMZN) – Get a report and apple (AAPL) – Get a report recently, too, have gained momentum.
While investors are wondering if FAANG’s move can continue, they remain focused on Facebook as the stock was one of the first to actually move.
Facebook was recently named the leading internet company, Evercore, along with Amazon.
This happened a few days after the company received a positive decision from the Supreme Court.
In other words, good news works in Facebook’s favor. Will the stock be able to maintain its recent momentum?
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While the chart we are looking at is based on a daily timeframe, the monthly setup gave investors a great rotation in March.
Starting with the inside month in February, when the entire trading range for the month was within the range of the previous month, Facebook cleared $ 276.60 in mid-March, held that level on a pullback, and then climbed to new all-time highs.
Hence, some digestion would definitely not hurt.
In particular, a drop to the $ 297.50 to $ 305 area would be ideal for long positions as the 10-day moving average is nearby and could act as support as well.
A dip in this area would allow Facebook stock to ease overbought pressures and give long buyers another chance to buy in the downturn.
If a similar scenario comes true, look for a potential move back to the stock’s 52-week high and then eventually a push up. Ultimately, the $ 340 level may be in play.
On the other hand, a break of $ 297.50 could put the $ 280 to $ 285 area into play unless the 10-week moving average comes into play first.