Cambridge Analytica scandal hits Facebook again
The rumour mill around Facebook is boiling again. According to a report in the Wall Street Journal, Mark Zuckerberg was aware of the privacy issues at Cambridge Analytica and still kept a low profile. The Cambridge Analytica case, which popped up a few months ago, was about the use the personal data of 50 million Facebook users by the political consulting firm, which was allegedly financed and commissioned by Trump consultant, Steve Bannon, among others.
In response to the Wall Street Journal article, Facebook shares fell in yesterday’s trading, but this is not new. The Facebook share price has had its problems for some time.
From a chart technical point of view, the share formed a top on July 25, 2018. This top was followed by a steady downward movement, from which the stock has not yet properly recovered.
The upward movement that started after Christmas 2018 could not match the highs of 2018 and fell away again with a correction in April to May 2019.
The area around US$180 could be decisive. If the market manages to jump above this level, the next significant resistance level in the April 30, 2019 highs area could be in the US$195 zone. If the market pierces this level with momentum, then another resistance zone could be in the US$207 area before the old all-time high in the US$218 area could offer further resistance.
However, if the market does not manage to jump above the US$180 level, then support could wait in the US$170 and US$165 areas, respectively. If the market breaks downward through these zones, the picture could cloud over. Further support could then wait in the US$156 area. If the market breaks through here as well, there is a possibility that the stock will show much deeper lows, perhaps finding support in the US$142 and US$132 areas.
The MACD oscillator is in negative territory, with the MACD and trigger lines approaching.
FB.US Daily Chart | Source: ActivTrader
Written by Daniel Schuetz, External Analyst, ActivTrades
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