Facebook (FB) has become severely oversold.
A day after outages went the social media stock down more than $12 a share, it’s bouncing back at double bottom support. RSI, MACD, and Williams’ %R are all wildly oversold, as well. From a current price of $333, we’d like to see an initial bearish gap refill around $340.
Eventually, we’d like to see it back to $380 a share – with patience.
Sure, whistleblower testimony is being heard now, but a good deal of what’s being presented about Mark Zuckerberg is already known to the public. Also, it’s tough to bet against a company growing as rapidly as Facebook with Q2 revenue growth of 56% and EPS growth of more than 100% year over year, with 2.9 billion monthly active users.
We’d use weakness in Facebook as opportunity.