Concerns over an investigation into antitrust practices by Facebook are weighing on the stock and the Nasdaq 100 index in Thursday’s New York trading.
This is coming as Dallas Fed President Robert Kaplan laid the blame of US job disruptions on technology rather than on trade issues in comments picked up by newswires.
Facebook and several tech stocks did not take the news well and are currently trading lower. The Communication Services Index is down close to 1% on the back of the current losses in Facebook stocks.
Facebook Technical Outlook
The daily chart of Facebook shows a head and shoulders pattern which is still in evolution and not yet confirmed. This pattern will only be confirmed if there is a break of the neckline to the south by either a 3% penetration, or a double candle close in quick succession (i.e. two successive daily candle closes below the neckline).
A close of the price candles below the neckline using these parameters could open the door for another leg to the downside, targeting 161.31 as the initial support.
If the price action fails to close below the neckline, the pattern is invalidated and this has the potential to lead to a push towards 195.75.