Facebook has formed an interesting topping pattern near Q1's high. Recent price action in the daily, justifies at the very least a retest of the 108-106 zone, but if this level fails to hold, I could see FB trading closer to the 100 even handle in the near future.
The rally off 2016's low has been intense, and hard to catch up with for eager longs, as well as devasting for traders trying to short it so far. The levels I labeled on chart, are the support levels to be tested in the near future, which will give us clues of the stock's direction, and the targets we can expect to hit. Each level is a condition in itself, if crossed with confidence we can expect price to travel to the test the next level below. If price rebounds, it'll head to the level right above it with high probability.
Good luck,
Ivan Labrie.
PS: If interested in receiving timely alerts for the trades I take contact me privately. Check my profile for details.
Disclaimer: I'm currently short FB, using an ATR based stop loss, aiming for at least a test of 106, and eventually 102.39.
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Let's see if it falls with the market now.
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Excellent, filled at the top, and in good profit now.
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Breaking the first support, heading for 106 initially.
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As of today's close, we'll have a confirmed time at mode decline, but I'd like to see it close below the Vix support at 109.83 ideally.
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Daily close is constructive for shorts. Snapchat is making our life easier...among other reasons for FB to be overvalued, that investors might be focusing in, on top of the general risk off enviroment.
Looking forward to covering half at 106 if we have signs of strength.