FACEBOOK and STOCKS: the cycles

FACEBOOK and STOCKS: the cycles

2020-11-06 • Updated

The election factor

Facebook made a pretty significant upswing recently. From $258 per share, it leaped to almost $290 – more than a 10% rise. Nvidia followed the suit with other stocks as well showing that the tech sector of the S&P wants to make the best of the elections. How exactly? In general, Republicans in the US Parliament are more preferred by this sector than the Democrats. At least, the fact that things in the Senate are going to stay pretty much the same as they have been so far means that there will probably be no more restrictions on the tech giants. Logically, they are happy about it – precisely, 10%-happy, like in the case of Facebook. What about the S&P in general?

12.png

The cyclical factor

Look at the daily chart of the S&P below.

In March, the S&P oscillated between 2780 and 2980: an upswing, a correction downwards, another weaker upswing, a correction to the same support, then marching upwards.

In June, a similar oscillation happened between 2980 and 3225: reaching a high, going down, making a lower high, going down again to the same bottom, then breaking to the upside again.

In September-October, we same almost the same, just protracted pattern: up, down, up but lower, down again, then breaking upwards once again. The support is now 3225 and the resistance – to yet get broken – is 3580.

What does it suggest? We are likely to witness a strong bullish push beyond 3580 that may well last until the very end of the year. Once it exhausts itself, the support to be watched for the bearish revenge will be in the area of 3580. But now – enjoy the march with bulls.

13.png

Don't know how to trade stocks? Here are some simple steps.

  1. First of all, be sure you’ve downloaded Metatrader 5.FBS allows you to trade stocks only through this software.
  2. Open the MT5 account in your personal area.
  3. Reveal all trading instruments by clicking “show all” at the “Market Watch” window.
  4. Start trading!

                                                                                                    LOG IN

Similar

Latest news

Microsoft hit record high
Microsoft hit record high

These days, investors’ attention is on Microsoft ahead of the company’s Windows 11 event on June 24.

Technical analysis for EUR/USD
Technical analysis for EUR/USD

EUR/USD found support at 1.1845 and is currently trading just below the 61.8% Fibonacci retracement of the March-May advance at 1.1920.

Deposit with your local payment systems

Learn more

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera