By Andrew Nyquist    While stocks have been busy marching higher in 2013, Facebook (FB) has been stair-stepping lower. Facebook stock price peaked in early January after a big run higher. In fact, back in October I wrote a piece about Facebook’s stock bottoming. It was $20 then. It rose to $32.50 early this year and now resides at $25.13. With the stock in a slow-motion decline, many traders are wondering where the stock may find some support. Let’s take a look at FB.
Looking at the daily chart and focused on near term action (for very short-term traders), the stock is oversold (RSI 29.92) and just recorded a DeMark 9 buy setup yesterday. This is only active for a 1 to 4 day bounce period, but may assist is slowing the slide. A band of support between $24.50 and $25.00 resides just beneath the current price. For stronger support and a macro lens, page down to the weekly Facebook stock chart.
Near-Term Daily Chart – Facebook stock
On the weekly chart, the support zone widens down to the September highs and mid-November doji lows. As well, Facebook stock is on bar 8 of an already perfected weekly buy setup, needing one more week to record the setup. The uptrend line (weak as it may look) resides on the lower side of the support band. It would come into play around $22.00. If this level fails, then the open daily gap and large expansion “up” bar from mid-November come into play.
Playing this setup requires a disciplined approach and likely a short-term “swing” timeframe. The stock is still reeling and very heavy, so longer term players should wait for more constructive action.
Wider Lens Weekly Chart – Facebook stock
Trade safe, trade disciplined.
Twitter:  @andrewnyquist and @seeitmarket
No position in any of the mentioned securities at the time of publication.
