Facebook's Long-Term Bull Trend Intact, Evercore Analyst Says

(Bloomberg) -- Facebook Inc.’s record-breaking plunge looks ugly today, but it still hasn’t been enough to break the long-term bullish trend the shares have been in for years, according to Evercore ISI technical analyst Rich Ross.

Facebook's Long-Term Bull Trend Intact, Evercore Analyst Says

The shares tumbled as much as 19 percent on more than 10 times the average daily trading volume by midday after a disappointing growth forecast prompted at least three sell-side analyst downgrades. Ross advised investors to take advantage of the “flash summer sale,” pointing out in a research note that Facebook remains above its 100-week moving average and has never closed below that level.

The long-term bull trend “remains intact” absent a close below the 100-week moving average of $159, Ross wrote.

Facebook shares traded for as little as $174.78 at the worst of today’s plunge and were hovering around $178 at 12:30 p.m. in New York. With the strong bull trend, Ross said he sees the stock stabilizing between $173 and $180, and then resuming its ascent in coming weeks.

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