FB – Facebook reverses off the record highs today and ends with a Gravestone Doji pattern.
The reversal pattern needs to have a close lower for tomorrow’s trade, to be official. We noted last week of the negative divergence on the chart hinting at a potential reversal in the works. The bull market has been so strong that if a reversal does take place we would predict that it would be temporary and a pullback to the 21-day moving average (blue line on the chart) or the 50-day moving average (red line on the chart) would halt the downturn. Nothing more than a rest, which is overdue.
Here’s the Daily Chart:
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