Facebook Inc. (NASDAQ:FB) has been outperforming all social media stocks this year. Despite the company providing a rather bleak forward outlook, a number of analysts believe that the social media giant is well positioned to take advantage of the opportunities available.
A couple of tech enthusiasts feel that Facebook’s source code is easier to figure out than originally assumed. This also presents the company with a significant security risk. Due to recent security breaches at notable companies, security experts believe that Facebook must strengthen its security parameters in order to protect its site from hacker activities.
When looking at the daily chart for Facebook, the stock is in the midst of a strong downtrend and is currently taking support at its 50-day moving average at $75.77. Its resistance on the other hand continues to remain near the $79 level. Its momentum indicators are giving a fresh sell signal, highlighting a clear shift in momentum towards the sell side. Additionally, its relative strength index is providing a sell signal, which has analysts a little alarmed. Lastly Facebook’s support level is now situated near its upward trend-line support at the $74 level.
Long Facebook Inc. (NASDAQ:FB) if it moves above $77.54 for an intermediate target at $80, with a strict stop-loss below $75.77.