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Facebook Stock may be getting hammered, but the stock technical analysis shows that the pounding is pushing Facebook Stock into extremely oversold territory which normally means a big bounce in the stock.

While investors certainly did not like the earnings news from Facebook last week, they have taken out their anger on the stock. Selling has pushed Facebook stock to extremely oversold levels which are not seen very often in a stock.

All the stock technical analysis tools are deeply oversold.

Facebook Stock Oversold

The Ultimate Oscillator is deep in oversold territory with a reading of 23.77.

Rate of Change is at an incredible – 29.05 which is as oversold as a stock can get within the parameters of the Rate of Change indicator.

The Slow Stochastic is an unbelievable 1.16 %K which is very oversold and the Fast Stochastic is so extremely oversold that it is actually flashing big bounce ahead for either Friday or Monday with a reading of %K 2.06 and %D 1.16.

Facebook Stock is ready to bounce

Stock Technical Analysis of Facebook Stock shows the stock is extremely oversold

Facebook Stock Ready To Rebound

A bounce doesn’t have to happen tomorrow, but if the employment numbers are not too bad and the market tries to stage a bit of a rally, Facebook Stock might surprise to the upside. It is so oversold that many of the readings in the chart above are seen only once or twice during the year on individual stocks. It should be interesting to see what happens next with Facebook Stock and how strong the rebound may end up being. For a short-term trade whether the best strategy would be call options or buying the stock, it all will depend on each investor and their trading style and strategy, but Facebook Stock might be perfect for a one or two-day rally before it tries to find support.

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  • Ellenoneill3

    But next weeks lock up expirations are going to flood the market and drive the price down further. At least that is the most commonly held word on the street. I am interested to hear your thoughts.

  • I am not so sure about what it going to happen. A lot of those holding since the IPO will not want to take large losses. My guess is most will hold on hoping for better prices ahead.

  • Ellenoneill3

    The first wave of expirations are the people who started with the company, so they got the stock for pennies. None of them are old enough to remember the dot com bubble, but if any of their parents tell them about it, they should take the money and run :)

  • I am not sure how they will react but overall you could be right. LOL.

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