FB over-weight, due for major market correction this week...

Over the past week, we have seen a -.58% drop in $FB price. Also, today's change of .20% (as of Tuesday, May 16th at 12:32pm) suggests that $FB has begun the process of market correction. After April 17th and until May 1st $FB posted an enormous run-up in stock price, many outside events triggered this run, however, in this run we see two gap ups in stock price, one on April 24th and one on the 28th. The one on April 28th has especially lead to an over inflation in share price creating a fake support line highlighted in orange. While long-term $FB is more than likely to surpass current share value, Yahoo Finance also reported that $FB missed earnings estimates (1.12est. vs 1.04act). This miss in earnings which has not been properly reflected in share price, along with over inflation of share price suggests that the current price of $149.71 is not sustainable.

Comment:

Additional factors that suggest large market correction is before the large gap up on April 28th, $FB's previous resistance level hovered around $147.10-$147.74. It is also important to note that this resistance range is still significantly above its 2-month trending resistance level of $146.20. In order for $FB to once again reach "stable market value" it would need to correct to around $147.40, over a $2 drop at current price. Shorting $FB ahead of its large correction will pay off within the coming weeks.

Comment:

And the correction came in, hope those that agreed with this had a position waiting because we are seeing $$$$ today!