Hello traders and investors! Let’s see how FB is doing today!
First, we see that FB is clearly in a bear trend. There’s nothing that could help FB now, unless we see a clear bullish reaction. As someone who is out of FB, I’m more tempted to buy than to sell, as the risk/reward ratio favors the bulls.
If we fill the last gap, it’ll confirm an Exhaustion Gap, and what’s more, the $ 323.18 is an interesting support, and a good place for a reaction, as we can see on the daily chart:
There’s a good chance that this could be an Exhaustion Bar, a large bar that appears after a bearish leg, hitting a previous support level, with good volume. Along with the possible Exhaustion Gap in the 1h chart, we can assume that any confirmation of a reversal down here would be an incredible sign to buy.
However, we always must wait for confirmation, ok. If I were shorting FB since the $ 385, I would probably book profits now.
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I completely agreed to the analysis. But what im going to say now is going to sound crazy. Predicting the floor is impossible and for me all depends on how much liquidity you hold. I prefer to play just a little Russian roulette on this kind of opportunities by buying at this levels, Is almost like "FREE MONEY" Whats the worse scenario, that it did drop few more dollars and you have to waite for sometime for FB's price to come back to normal? or loosing the chance to get into a great entry point? How much better can it get? Bill Miller once said: "Real risk and perceived risk are two different things. People perceive risk to be high when prices are low, and they perceive risk to be low when prices are high. That is the psychological problem that people have"
@carlosessex, Then I'm crazy, because what you just said it is not crazy to me. I always like to buy when it is dropping, in a bull trend of course.
Thanks for your support, Carlos!