$FB Approaches $100

$FB (NASDAQ: Facebook Inc.) has in recent weeks approached the pivotal $100 level.

$FB : Facebook Inc.

For the majority of 2015, the stock has traded between the $70 and $80 levels. In the final weeks of June, however, the bulls finally broke out of this range and $FB has since traded as high as $99.24 on 7/21/15.

On the daily chart, +DMI is still above -DMI, so the bulls are in control over this timeframe. However, the ADX line is no longer rising and is now trending lower, which suggests that a range bound trading environment may be at play in the short to intermediate term.

There is a gap zone between the $91 and $92.50 price levels in which the stock has not traded for the most part. I would not be surprised to see this gap tested, especially if the bears continue to apply selling pressure and -DMI rises. The decline in the RSI signal suggests that bullish momentum may also be waning.

Considering the fact that $FB has risen for six weeks in a row prior to last week, consolidation above the $88-$90 support zone is to be expected in the coming month. The $100 level remains as the key resistance point to watch, assuming the bulls can regroup and push for a retest of it.