Will FB fill gap?

October 28 FB bounced perfectly off of a support level and had a major uptrend. Will be looking to take profits at $321 and waiting for next move. RSI has not been able to get over 50 since mid September, so a push pass the median trend line would indicate that the gap may be getting filled. With where the Slow Stochastic is I would not be surprised to see a gap fill. Will be looking to get into a position Monday - anything over the weekend is a huge gamble. Candles and five day EMA is under the 200 EMA; the ten day EMA tends to act as a resistance level as well. Either way it'll be a substantial move next week

Comment:

FB looks to start a false recovery to $400 over the next month or so. For the first time in six weeks, FB closed higher than its weekly open, The weekly Slow Stochastic is so low and its showing bullish momentum.

WEEKLY CHART:

FB broke an upward moving channel weeks back and it looks as though it is going to retest that upward trend line. It'll likely retest at the channel at previous resistance point; picking the point with the most contact $359 will be price target

Expecting FB, at some point next week, to test $317 likely after the FEDS press conference November 3rd. Panic selling at a resistance level and bulls waiting to purchase stock on discount at dip.

DAILY CHART:

Indicators show bullish momentum and with their positions FB looks like it will fill the gap; however, it does not seem like FB would be able to break pass the gap because it would find resistance at the 50 EMA. Too, the 1.618 fibonacci (FB shows a tendency to respect this resistance level) has $337 as a resistance point.

$337 will act as a very strong resistance level, and break above this resistance would act as a breakout to $359. That would mean that FB would break the downtrend channel that it has been following to a T.

Scenarios:

If FB starts Monday bearish and on a strong downtrend in the morning:

Entry: $320.19
Price Target: $327.19

If FB starts extremely bullish:

Entry: $330 (with price rejection, retest previous support bounce and breakthrough)
Price Target: $337

If FB hits $337 by November 3rd:

Will be looking to get PUT entries. If there is massive buying RSI should be near overbought and the Slow Stochastic should be very high and will be looking to go down.

HOUR CHARTS:

Four hour (three hour too) chart shows that there is a bullish momentum while the two hour (one hour too) shows bearish momentum. There may be consolidation at the start of November 1st. Would be looking for FB to reach $320 later in the day with the shorter hour charts start to trend up.

Comment:

Stock futures are slightly up over the weekend; with the future hike to stocks it looks like FB might be looking resistance in the morning. If the stock hits and breaks resistance early in the morning at a rapid pace would be looking for potential long for a day trade. If it is a slow trend throughout the day, would look for a rejection toward the end of the day and use that as entry for a quick swing trade.

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Trade closed: target reached:

Gap filled