Gaps below 50, 100 and 200 day MAs
Needless to say, Facebook is a major story today. The stock is down $41 or over 19% on the day. Ouch.
Moreover, the stock has a damaging technical picture.
Looking at the daily chart above, the stock's gap move lower opened below the 50 day MA at $196.44, the 100 day MA at $183.56 and the 200 day MA at $181.546. The high price in trading since the opening reached $180.13 - about $1.50 under the 200 day MA. The stock currently trades at $176.
Staying below the 100 and 200 day MA is not a good sign technically.
The price at the heat of the Cambridge Analyics traded all the way down to $149.
Technically, stay below the two key moving averages is more bearish for the stock. If there is a correction toward the levels - Amazon reports after the close - traders will be eyeing those levels for sellers. If Amazon beats there could be a relief rally in FB as well. If earnings are not so good, it should spell more trouble for FB going forward.
PS. Netflix - which also had disappointing earnings last week - fell below its 50 day MA at $375.82, but remains above its 100 day MA at $344.509.
PSS Amazon is down -$51 on earning fears (it traded to new highs yesterday). Its 50 day MA is at $1707.52. Its 100 day MA is at $1615.34. On April 2nd it based at $1355 ahead of the 100 day MA (blue line).
