I pointed out this broadening formation a couple of weeks ago, and it is still in play. At the top of the range, Facebook's stock has hit three new subsequent highs, each one trying to breach the top of the megaphone, and each time falling back again.
But with each attempt, it reaches a lower high on the RSI. This is a symptom of weakening price action. When this fails, which I expect to happen soon, it is going to be terrifically dramatic. We will likely revisit the lower channel.
But with each attempt, it reaches a lower high on the RSI. This is a symptom of weakening price action. When this fails, which I expect to happen soon, it is going to be terrifically dramatic. We will likely revisit the lower channel.