Chart Analysis: As we are now fully engulfed into earnings season, U.S. stocks in Q3 are performing or should I say underperforming about as well as my fantasy football team. Last week’s news was sprinkled with the words “flat”, “downgrade” and “weak”. Will this trend continue? Today’s NinjaTrader Chart of the Day powered by Free End of Day Kinetick data reviews the social media giant, Facebook ($FB) which is on deck to announce earnings tomorrow. Investors did not appear to react with a “Like” after its first reported earnings on July 26th resulting in a gap down in price and $FB has been trading in the same range ever since. The main news regarding Facebook is how they will monetize their billion member user group? One option that may be discussed during this earnings report is the new promotion feature for the Facebook news feed. Companies now have the option to pay Facebook to have their posts appear at the top of a member’s news feed page to gain more visibility. Will this feature be popular among companies who utilize Facebook to connect with their customers? Day and swing traders seeking trade setups in $FB may need to combine this fundamental information with technical analysis to play this market. Active traders can use free NinjaTrader charts where they can apply indicators and drawing tools to identify market direction and support/resistance levels. From the gap down, the NinjaTrader Fibonacci Retracement tool can be applied as a method to visualize support and resistance areas as well as the current price range for $FB. The RSI indicator applied to the second panel can also be used to spot potential overbought/oversold conditions and changes in trend and momentum. What indicators are you currently using for your own analysis? I would be willing to go long that NinjaTrader has them! Give this chart a like or share through your own social media channels and as always, your comments/feedback are welcome. Happy trading!
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