Facebook Stock Price and Forecast: Will FB stock go up?

• FB stock opens lower but switches to green in the first hour.
• Facebook had a major outage on Monday for nearly 6 hours which hit the stock.
• Former Facebook employee testified before lawmakers in the US on Tuesday.

Update: Facebook (FB) stock has just done a red to green flip in the first hour of trading and is currently up 0.1% at $333.37. There has been a lot of news flow for traders to digest on this one over the last few sessions and for the most part, the stock has suffered. Technically there is a gap to fill from Monday's open but so far the stock is trading in a tight range as it searches for direction. 

Tuesday's performance was solid but still only a brief recovery from the sharp fall induced by the global outage on Monday. Facebook stock fell nearly 5% on Monday. 

Facebook 15-minute chart

Facebook (FB) stock news

Facebook just cannot keep itself out of the headlines lately. Usually, the social media giant is bringing headlines and the latest stories to users, but recently Facebook has been in the news for all the wrong reasons, especially if you are long the stock! First, we had the global outage on Monday affecting all Facebook platforms: Instagram, WhatsApp and Facebook itself. Then on Tuesday a former Facebook employee now better known as "the Facebook whistleblower" testified before the US Congress. Frances Haugen's testimony was critical and drew strong responses from lawmakers. In an unusual move, political criticism appeared bipartisan with some Republican and Democratic senators uniting in their comments toward Facebook. 

Senator Edward Markey, a Democrat, said "Your (Facebook's) time of invading our privacy and preying on children is over. Congress will be taking action." Senator Richard Blumenthal said, "The damage to self-interest and self-worth inflicted by Facebook today will haunt a generation ... Big Tech now faces the Big Tobacco jaw-dropping moment of truth." Meanwhile, Republican Senator Marsha Blackburn said, "Facebook is not interested in making significant changes to improve kids' safety on their platforms, at least not when that would result in losing eyeballs on posts or decreasing their ad revenues."

In response, Kevin Mcalister from Facebook provided a statement: "The very existence of internal research on tough and complex issues is being recast as an example that Facebook isn’t living up to its responsibilities. The opposite is true: this research is more proof that we invest heavily, so our teams can improve our apps and the resources we provide."

Facebook (FB) stock forecast

That was a lot of news to get through, but the chart at least provides a quiet space to just analyze the price movements and trends. The gap at $338 holds us in a bearish trend, and only above do we turn neutral. Facebook is not alone as many big tech and Nasdaq names saw stock prices fall with yields up again on Wednesday. FXStreet expects those falls to resume despite Tuesday's bounce.

$328 is a potential support zone as the volume and point of control are here, but we prefer to wait for the 200-day moving average and Volume Weighted Average Price (VWAP) for the year at $312 to $315 before considering buying this dip. 

FXStreet View: Bearish, neutral above $338. Bullish above $355.

FXStreet Ideas: Buy the dip at $312 to $315, but always use stops.