Facebook Drops To Support, But Is The Sell-Off Over?

Shares of Facebook, Inc. FB have dropped to support and there’s a chance they rebound. If the support breaks, however, they could make a big and rapid move lower.

At support levels, there’s more demand for a stock than there is supply. Sometimes, stocks rally after they reach support. This is what happened when Facebook's stock fell to the $300 level in late April.

Sometimes when stocks reach support levels, the support breaks. This means the sellers have satisfied all of the buyer’s demand and then some. With these buyers out of the market, sellers will start to panic. They will have no choice but to accept lower prices.

This could force the shares into a downtrend.

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