During the first week of the month, Meta Platforms (FB), formerly known as Facebook, kissed its 250 week EMA.
At the beginning of the following week (which was last week), FB set up for a short term weekly trade, which was profitable- unless you held through Friday.
Hmm… what happened on Friday?
FB flushed down and closed below the long term 250 Week EMA body support line it respected since 2017:
FB, however, kept its respect for the wick support line: the 296 week EMA (in red in the above chart).
Some trading strategies consider the bar/candle body (open / close), and some strategies consider the wicks (high / low). Moving averages, amongst other technical indicators, are normally calculated using the close price of the bar/candle.
Last week’s price dynamics triggered an update to the body support MA line the stock respects. The new body support line is the 258 week SMA, currently at 217.81:
Based on the stock’s price history, it will be interesting to see how the price action unfolds.