Technical Earnings Preview: Facebook at life highs ahead of earnings
The stock hit a new all-time high today ahead of earnings news after the close, at $218.06 at time of writing. On a longer-term chart there is a clearly defined bullish price channel that the stock has been trading in since the lows of March of this year. If the news is a bullish surprise, there is no overhead resistance of any kind, opening up a potential run to the $225-$250 area, depending on the reaction to news. If earnings or outlook are a negative surprise, a drop below $207 would break the current price channel. A break below the price channel would be a technical negative for future price. Next support would be at the $200 area and then at $194.80, $190, $184.92, and $180. There is a notably small short-base in terms of the float which has been reduced ahead of news, suggesting traders are positioned only for positive surprises. This could be a negative factor technically, reducing buy-to-cover demand, if the news is a bearish surprise.