In the first week back since the extended Easter stock market holiday, investors have had their eyes fixed on Facebook. The stock surged to a new record high yesterday, breaking through the previous record high of ~$304.67 on 24 August 2020.
However, it wasn’t just Facebook that surged to record highs. Alphabet and Microsoft did too. This highlights that investors are now willing to rotate from cyclical stocks back into technology stocks which have been underperforming over the past few weeks.
Source: Admirals MetaTrader 5, #FB, Weekly - Data range: from Mar 2, 2014, to Apr 6, 2021, performed on Apr 6, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
In the long-term, weekly price chart of Facebook’s share price shown above, the overall uptrend is evident with several significant declines most notably in 2018 and 2020. Even after these falls, the price has rallied back up to a new record high, underlying the strength in the stock price.
For the past several months, Facebook’s share price - along with other Big Tech names - has been trading inside of a range, as shown from the black horizontal support line and descending resistance line in the daily price chart below.
Source: Admirals MetaTrader 5, #FB, Daily - Data range: from Oct 16, 2019, to Apr 6, 2021, performed on Apr 6, 2021, at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.
Now that price has broken through its most recent trading range and recorded a new all-time high, it may attract the interest of technical momentum traders who will be looking for signs of a trend continuation. It could be a very interesting second quarter for Facebook!
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