I believe that the fib time series has served as an accurate indicator for movement in the past few months and I suspect it to continue until a notable change in volume/momentum (I believe this trend to change once earnings are released on 10/30). I expect to see a 3-6% jump in stock price around 10/21. Time-stamped, now the anticipation begins.
I would be tempted to say that from here the up trend might continue. A Hammer was formed on High Volume right at a pretty interesting level. As long as there will not be a daily close under 45.00 we can expect a rally above 52$.
Depending where it closes today, will dictate where it will go in the following day. However, in my opinion the big guys are positioning themselves for earnings announcement, so I plan going long above today's high with the stops below today's low.
Facebook Inc (NASDAQ:FB) is coming into a major gap fill level. This level is $47.30. On an intra day basis, traders should expect a strong bounce off this level. This is just a day trade. Facebook has been ripping higher of late, gaining 100% from the last earnings announcement.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
