Here's my near term and intermediate term look for Facebook (FB). FB has been an institutional favorite of late after the company reported much better than expected results in their last earnings report.
The extreme bearish sentiment that followed the stock after their disappointing IPO and subsequent drop in price has completely changed. The sentiment on Twitter and on StockTwits is now largely bullish, with any weakness mentioned as another buying opportunity.
However, after this big ramp up in the stock in the last 12 weeks, the stock may be due for a bit more of a pull back near term to shake out some of that excessive bullish sentiment. There have been 4 days of distribution in the prior 10 trading sessions, and zero days of accumulation.
This suggests that some investors have decided to lock in profits before the company's next earning report due out in 2 weeks.
The chart below shows that very near term support is between $45.25 to $45.60. After that it's down somewhere between the 50 DMA (currently $43.68) and the low of the last sideways consolidation box which is near $42.43.
The long term trend is solidly in place, so investors with that time frame could use an expected further pullback to accumulate.
Always use stops to protect from big losses.
Click on chart to enlarge:
The extreme bearish sentiment that followed the stock after their disappointing IPO and subsequent drop in price has completely changed. The sentiment on Twitter and on StockTwits is now largely bullish, with any weakness mentioned as another buying opportunity.
However, after this big ramp up in the stock in the last 12 weeks, the stock may be due for a bit more of a pull back near term to shake out some of that excessive bullish sentiment. There have been 4 days of distribution in the prior 10 trading sessions, and zero days of accumulation.
This suggests that some investors have decided to lock in profits before the company's next earning report due out in 2 weeks.
The chart below shows that very near term support is between $45.25 to $45.60. After that it's down somewhere between the 50 DMA (currently $43.68) and the low of the last sideways consolidation box which is near $42.43.
The long term trend is solidly in place, so investors with that time frame could use an expected further pullback to accumulate.
Always use stops to protect from big losses.
Click on chart to enlarge:
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