At the beginning of 2016,all the major indices are showing weakness, but some stocks are still showing strength or trying to hold pretty well, Among these stocks, FB is one of the stocks that are still strong in the market. Facebook stock chart is forming a tight pattern flag on weekly charts .

In the daily chart, Fb stock also formed a beautiful flag. As it touched the lower part of the flag, it get supports. Lower part of the flag is also acting as a support line of the facebook stock chart. Because of  the  week market Fb stock tried to get support on lower part of the flag formation.

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FB daily Chart in flag formation

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FB  weekly  chart
FB weekly chart

(Source: Freestockcharts.com)

Flagpole: FB formed a beautiful flagpole from A to B point.

Flag: After forming the flagpole, FB is forming the flag pattern with 9 week period. Even though 8 weeks is ideal for flag formation, this extended formation is OK considering the prolong weakness in the market.

Volume: volume is dried up after the flagpole formation. We see the volume is below the 50 day moving average. That means institutional investor is holding the stock and also support the stock.

Pivot point: stock is holding on weekly pivot point support level 3 for more than two month. That means stock gets support as it comes back to this point.

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FB weekly chart in Flag Pattern with volume and pivotpoint
FB weekly chart in Flag Pattern with volume and pivotpoint

(Source: Freestockcharts.com)

Rounding number: Stock is holding just above the psychological critical point 100. This point is highly critical for all trader and investor from psychological point.

Possible breakout or break down: The stock is on the critical situation. It   will either break out or breakdown. Possibility of breakout is higher if market started to move higher.

Fundamental: FB has sound fundamental with high growth potential. FB also has very strong track record to outperform the EPS from the beginning. FB beats EPS consensus every time except one after IPO. That also support people confidence to the stock.

Bottom line

FB looks pretty strong flag formation. If market moves to the upside, we may get big upside move to the fb stock and it may hit our price target 122.but be cautious that since pattern is more than 8 weeks old, some people will consider this pattern as descending triangle pattern. If stock breaks the $100 psychological point and hold below $100 , it may trigger downside as a reversal pattern of descending triangle.