Facebook, Inc. (FB) shares soared more than 2.3% on Wednesday after breaking through key trendline resistance levels. Martin Sorrell, CEO of WPP plc (WPPGY​), told CNBC viewers that attendees of the West Coast App Developers' Conference came away believing that Facebook was very successful in countering the rise of Snap Inc. (SNAP). Engadget also reported the launch of Facebook Spaces as a hybrid of Facebook's Spaces and Live products targeting virtual reality.

During the first quarter, Facebook reported revenue that increased 49.3% to $8.03 billion – beating consensus estimates by $200 million – while earnings per share of $1.04 beat consensus estimates by 18 cents. Analysts believe that these trends will continue as ad impressions stabilize and ad prices move higher. For instance, Credit Suisse analysts recently raised their 12-month price target on Facebook stock to $220 – a 38.5% premium to the current market price. (See also: Facebook and Google Dominated in 2016 Global Adspend.)

Technical chart showing the performance of Facebook, Inc. (FB) stock

From a technical standpoint, the stock broke out from trendline and R1 resistance at around $156.80 to new all-time highs. The relative strength index (RSI) moved into slightly overbought levels at 64.91, but the moving average convergence divergence (MACD) could see a bullish crossover in the near term. If this occurs, the stock could see prices rally further over the mid-term to long term after the recent consolidation.

Traders should watch for a breakout to R2 resistance at $162.62 or some consolidation above trendline and R1 support at $156.80. If the stock experiences a false breakout, shares could move lower to the 50-day moving average and pivot point at $150.68. Traders should maintain a bullish bias for the time being, although oversold RSI levels mean that there could be some consolidation before any significant move higher. (For more, see: Apple, Facebook Among Millennials' Top 5 Stocks.)

Charts courtesy of StockCharts.com. The author holds no position in the stock(s) mentioned except through passively managed index funds.

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