Meta Platforms (FB), formerly known as Facebook, today (Monday) broke below its 250 Week EMA body support line ($229.62) it respects since 2017.
The red line is the 296 week EMA (currently at $214.14) and it acts as the long term support line for the bar/candle wicks. For now, it has not been breached.
It’s important to note that this is a weekly chart and this week’s bar/candle is still being built. It will finalize on Friday. If the stock price closes the week above the 250 Week EMA (blue) line, currently at $229.62, then this line will remain a valid body support line. We have seen such a behavior in March 2020.
A few possible option trades can be put on in case FB does keep its respect for this body support line:
- A buyer can buy the 225-230 bull call spread (bcs) for $2.20. This is the max risk and the max reward is $2.80.
- A seller can sell the 225-230 bull put spread (bps) for $2.80. This is the max reward and the max risk is $2.20.
Disclaimer: Auto.MA.T.Ka is not a financial advisor and any trades that are discussed in our posts are not trade recommendations. If you decide to copy a discussed trade, that means you are fully responsible for it.