- Facebook (NASDAQ:FB) shares have risen over 5% to hit an all-time high.
- The move comes after the social media giant launches a competitor to TikTok.
Facebook news today
Facebook (NASDAQ:FB) shares have rocketed on Thursday moving over 6% higher. The move comes after the firm launched Reels is a short-form video feature that allows Instagram users to make short videos with a musical background and add augmented reality effects. This could be great news as the US and other world governments are looking to blacklist the Chinese social media firm (TikTok) due to espionage fears. The app was launched in Brazil in November 2019 but yesterday the company rolled out the new product on Wednesday in the US. TikTok claims to have around 100 million users in the US and if Facebook manages to capture some of that market it would be great for their brand. Microsoft are looking to buy the US arm of TikTok so there could be some weakness if that deal gets confirmed but for now, the only way is up.
Facebook daily chart
Looking at the chart. the price has accelerated above the technical trendline to hit an all-time high. Interestingly the price broke the trendline after the earnings update on 31st July but moved back below. The price then used the trendline as a support zone to hold above the 250 area.
There were some other bullish technical signals too, The Relative Strength Index also had a trendline at the top of the waves. The indicator broke out of the trendline on the day of the earnings release and continued in its upward trajectory. Another good confirmatory signal is the increase in volume on the break. This indicates that this move is the “real deal” and not a false break higher.
The MACD histogram bars are also growing and the signal lines are diverging apart. More importantly, the signal lines remain above the zero level which shows that the uptrend is still intact.
Overall this is a very strong uptrend and it would take a brave trader to short the stock from here. The market is still making higher highs and higher lows and until that changes and the 250 level is broken to the downside all is well with this trend.
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