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How are Facebook stocks holding up after a 6-hour outage?

Probably the most impactful news this week is outage of Facebook, Instagram, and Whatsapp. These services were unavailable for almost 6 hours. How has it affected Facebook's stocks?

The fall has happened earlier

The vast majority of people notice that there is something wrong with stocks only right after such news is announced on the market. However, anyone who looks at the chart properly will notice that Facebook had its peak on 1.9.2021 . Until then, it went into correction. The key date here, however, is 17.09.21 . That is because on that day Facebook fell through the trend. Therefore, the outage has only deepened the stock market crash.

From this, we can deduce that the collapse of Facebook’s stocks occurred before the outage itself. And so the outage of Facebook was just fuel, which was poured into the metaphorical fire. As the first support, where the whole slump could stop, I would see the level of 395 – 304 USD per share. We are currently at $ 333 . Overall, this is a -15% decrease from the top, which is good, but definitely not good enough.

Facebook stock prices on a daily chart Figure 1: Facebook stock price on a daily chart

The overall trend

As for the overall trend, Facebook looks similar to the S&P500 or NASDAQ indices. Where we have seen rapid growth in recent months. The price is currently testing this basic trend on a weekly chart. It is therefore logical that a reaction occurred in these places. I think a rebound might come here, but it will be rather short-lived than long-lasting. As with the indices, I expect the price to drop through the trend.

facebook stock price on a weekly chart Figure 2: Facebook stock price on a weekly chart

Conclusion

The analysis clearly shows that Facebook’s stock price began to fall long before the recent outage. Overall, we now see declines and uncertainties in the stock world. Prices have been rising for a long time and a deeper correction hangs in the air, threatening stocks and indices.

Jakub is a crypto trader and founder of Trader 2.0 project, which helps hundreds of traders from central Europe to understand cryptocurrency trading and its challenges. Jakub not o...

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