andrew.berg

Facebook tight consolidation prepares to resolve

NASDAQ:FB   FACEBOOK INC
Facebook             ( FB             ) in the morning went through previous high at $59.56 but than reversed and gave us tactical entry with Short option. That was point where you make adjustments and should react quickly as market stays in range-bound mode.
After it came from $20s to $70s and then was sold off to mid $50s it enetered into wedge/range and recent action became very tight. I expect that it will resolv soon and will take breakout trades both sides.
Today, my plan is to trade with Short below previous low of the day at $58.18 and I expect to see some downside continuation. I have slight bias to downside as most of my moving averages curling down but it still stays above 200 MA ($54).
You should count overall market conditions. If it will confirm our selling idea then I am going to execute this trade.
AlexandreFF
2 years ago
This is a symmetrical triangle pattern. This is a pattern where we don't know what's going to happen. There seems to have more pressure on the sell side and if we see a bearish breakout it could go to the $53 level
+1 Reply
andrew.berg PRO AlexandreFF
2 years ago
Exactly. Sometimes, I prefer to enter with my feeler before breakout when pattern is tight. So that is how I get reasonable risk/reward ratio. Then add on break down so your average is comfortable.
Reply
AlexandreFF andrew.berg
2 years ago
That's a good reason i didn't think about, thank you for your chart
Reply
andrew.berg PRO AlexandreFF
2 years ago
Thank you for your comments
Reply
elcololp
2 years ago
and now?
Reply
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