Facebook has had a tremendous run over the past few weeks. On this chart I have highlighted a pattern that has been propelling this stock forward whether or not this pattern continues I can not say. However, what I can do is point out some key patterns. First off Facebook likes to pullback an average of 6.58% before buyers step in. Second sentiment can be gauged using the 15 EMA. Third after price retraces from those pullbacks and break out to new high the stock usually rallies at least 2$ before a significant pullback.
Comments
StealthTrader
⋅
I think once we can hold above this resistance then we can tackle 58
StealthTrader
⋅
Took some time for this breakout trade to initiate because of the DC debacle however provided some good entries in preparation for this breakout. Today price broke out and held above resistance expect higher prices in the future.
nmike
⋅
.....nice support hit at 45.53
StealthTrader
⋅
Its always good to see that simple concepts such as old resistance turns into new support still works in today's market.
QuantitativeExhaustion
⋅
What's more likely in your opinion, Google hitting 1k or Apple hitting 530?
StealthTrader
⋅
Both are plausible I think those moves will come down to earnings don't see any other catalysts until then.
QuantitativeExhaustion
⋅
I agree. Looking at option prices, GOOG OTM calls/puts are extremely expensive after the earnings date. Apple is a bit less expensive, but you can notice the huge difference x3, after the earnings date. So they are pricing in volatility after earnings and a big price move. GOOG +60 AAPL +30
StealthTrader
⋅
Yeah GOOG usually still gives a good opportunity after earnings so a post earnings play can still be very profitable.
QuantitativeExhaustion
⋅
Yeah thinking 1010 First week of Nov. on good earnings
shecantrade
⋅
You've illustrated good evidence to back up your trading assumption