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Charts: Google Will Likely Outperform Facebook


Google's 14-day RSI shows a bullish divergence.

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Facebook (NASDAQ:FB) continues to be defriended, extending its recent underperformance by dropping 1.6% yesterday (March 17). The MACD indicator has turned down and shows no sign of reversing. The price wants to meet the 50-day exponential moving average over the next week or two, and should that snap, the next level to watch is the 200-day exponential moving average at $50. That latter test would ensure a needed fill of the gap left from the late-January pop.
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The battle for buddies between Google (NASDAQ:GOOG) and Facebook is likely to go in favor of Google over the next several weeks. Support has been found at the same level as the base, which developed in October last year. Following that bottom, a rotation from Facebook and into Google continued for two months, with the latter rallying over 30%.

With a strong bullish divergence on the 14-day RSI, the rotation has a high probability of repeating.
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