Support is at around $26.90. Look back at the end of June when it had a huge Gap down from 27 to the 23's. Facebook recently filled and broke through that Gap reaching almost 29 the other day...so that resistance of around 26.90 now becomes support......Looking at how strong Facebook has been I bet the support of 26.9 holds and perhaps trades sideway a bit before going into the 30's where major resistance is at 33
Well, yes, we agree, that's the critical level - and it closed right there. Whether it breaks through 26.90 (approximately) or bounces from there will determine the short term direction. Note that I said 26.80 because support/resistance levels aren't precise to the penny, so just a few cents below isn't really a break, and because it has gone to the 26.80's a couple of times in forming the current pennant.
The reasons I think it's more likely to head down than up are (1) the bearish engulfment, (2) max pain is at 24, so it should be heading in that direction for OE - though granted there's enough time before OE for it to go up to the 30's and head down again, and (3) I think the market on the whole is heading down - see my posts on the SPY board about VXX as a leading indicator.