The US Federal Trade Commission and several US states have filed antitrust lawsuits against social media giant Facebook, over what it terms a “buy or bury” tactic it alleges the company is using to maintain its market monopoly. The lawsuit is coming after Google’s parent company Alphabet was also hit with an antitrust lawsuit earlier in the year.
The US and European governments have tightened their scrutiny of the big tech companies, alleging that companies such as Facebook, Amazon and Alphabet are literally stamping out competitors or buying them up so as to maintain the monopolies they have in their various market spaces.
Facebook is down 0.84% on the day.
The daily chart of FB reveals a stock that is in a consolidation area of the bearish flag. The stock has touched off the lower edge of the flag, but was rejected. A breakdown of the consolidation area confirms the pattern and opens the door towards 258.91 in the first instance. The 24 September low at 246.49 forms an additional support.
On the flip side, a bounce on the flag’s lower border allows price to retest the 277.53 resistance, with 291.89 forming an additional resistance. A breakout above this price invalidates the pattern and opens the door towards the 304.69 price level.
