As tech hits new highs, one outrageous batch is sitting out of a rally

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It competence only be time to unfriend Facebook: Technician


It’s time to strike a sell symbol on Facebook, according to one technician.

Shares of a amicable media hulk are adult scarcely 34 percent in a past year, now trade reduction than 1 percent divided from a all-time highs. But Carter Worth, conduct of technical research during Cornerstone Macro, says there’s difficulty brewing in a charts.

Worth initial points to a flourishing dissimilarity between Facebook and a NYSE Fang + Index, that also includes names such as Twitter and NVIDIA.

“What we have of march is a good association that has started to not be a case,” Worth pronounced Friday on CNBC’s “Options Action.” “Often after a good runup, a blur or case foreshadows some-more trouble.”

Facebook is a worst-performing FANG batch year to date. Its shares have risen 5 percent, while Amazon and Netflix shares have rallied 37 percent and 67 percent, respectively.

Worth also remarkable Facebook’s new underperformance in a final 4 months. While a SP 500 has risen 5 percent in that time, Facebook has gained only over 4 percent.

Furthermore, Worth forked to Facebook’s debility relations to a altogether SP 500 tech sector.

“Its relations opening to a other choices one could have done is down,” Worth explained, “That’s not great. [It’s] not a good setup.” On Monday, both a Nasdaq and a SP record ETF, a XLK, strike new all-time highs.

A closer demeanour during Facebook’s trend line shows a batch slipping next a uptrend channel. Despite a retesting of those levels, Worth cautions that when bonds “hit a head” like this, it’s mostly an indicator of some-more bearish activity ahead.

“I’m a seller of Facebook here,” Worth advised. “If you’re prolonged and got good gains, take your income off a table.”

Facebook shares were trade somewhat higher, during $185.83 on Monday afternoon.

Nia Warfield

Options Action




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    It’s time to strike a sell symbol on Facebook, according to one technician.




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