Facebook stock suffered a devastating investor exodus last year, but FB shares held the line and are now poised for a 25% surge. | Source: REUTERS / Dado Ruvic
By CCN Markets: Facebook (FB) stock suffered a devastating 2018 amidst controversies that led to a mass investor exodus. In one particularly painful trading session, Facebook rewrote the history books with a $126 billion plunge.
The social media giant weathered the storm, and FB shares are up almost 38 percent this year amid a broad stock market recovery. And as major stock indices succumb to trade war panic, Facebook is poised to offer investors massive upside.
FB stock’s technical picture suggests that the company could be on the verge of rallying more than 25 percent, a move that would enable it to set a new all-time high.
Facebook Recovered a Key Support to Regain Its Bullish Momentum
A look at the weekly chart reveals that FB shares have been trading within a large ascending channel for over seven years.
The support of the channel was briefly broken in October 2018, which ignited a waterfall event that drove the equity to as low as $123.02 in December 2018.
However, the move below the support of the channel appears to be a deviation. Bulls bought the dip and lifted the stock back above the diagonal support in January 2019. The recovery of the support catapulted Facebook to a 2019 high of $208.66.
The stock is currently correcting, but it is still inside the ascending channel. Thus, as long as it trades within the structure,