- Facebook (FB) manages to continue generating new historical highs and reaches $ 370.95 usd.
- The positive delivery of the quarterly report by Snap and Twitter is what triggered the bullish movement of Facebook.
- What levels can we expect for this instrument in the coming days?
Facebook action (FB) it has risen + 6.68% so far this month and is preparing for the next installment of its quarterly report next week. Today the action continues with the advances thanks to the results reported by Snap and Twitter. What variable is the one that triggered the big bullish movement?
If other social networks report excellent results, why not Facebook?
Following the market close on Thursday, Snap, Snapchat’s parent company, provided a first indication of how digital advertising appears to have fared during the second quarter. The company’s quarterly revenue soared 116% year-on-year, a huge acceleration from the 66% growth the company experienced in the first quarter.
To this is added the positive report delivered by Twitter also during the afternoon of yesterday. Twitter’s revenue grew 74% year-on-year in the quarter, according to a letter to shareholders, citing the company “a broad increase in demand from advertisers.”
This suggests that Facebook may also see a significant acceleration in its growth rate when the company reports its results on July 28.
Add to that an analyst’s decision to increase his 12-month price target for stocks from $ 400 to $ 480. Supporting its “outperform” rating for the stocks. Credit Suisse analyst Stephen Ju says his conversations with advertisers suggest strong levels of spending.
Now what can we expect for this action?
Technically, Facebook is trading in a solid uptrend. The share price is positioned on a moving average of 50, 100 and 200 periods in daily charts and, in addition, it remains operating on the weekly chart and on an uptrend line that has been in place since April 2021.
Today the stock managed to rise + 5.67% at 11:44 EDT, which allowed it to trade around $ 371.09, thus reaching a new all-time high.
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If this bullish momentum continues, the stock could go in search of its next resistance level, which is at $ 380 dollars and, from there, even test if it can reach $ 400 dollars.
Everything will depend on the result of your quarterly report on July 28. Expectations are high, therefore, it will have to surprise to be able to continue with this great bullish momentum. Failure to do so would lead to a halt on the rises and that could lead the stock to correct from current levels to the most relevant support level around $ 340 / share.
Written by Gabriela Araya, Investment and Trading Market Analyst.
Contact and follow Gabriela on Twitter @GArayaFX
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