FB (Facebook Inc. @ 28.00) broke out of a 12-day falling channel to form a potential bull flag pattern on the daily chart. With the momentum indicator shifting higher, there is scope for further upside. A decisive break above the key 28.88/28.75 (3/13 December highs) resistance area would confirm the bullish continuation pattern and initiate the next upleg towards 30.55 (2 July low, near the 50% retracement of the 45.00/17.55 fall). Further strength above there would open 31.40 (12 July 2012 high) which guards 33.45 (22 June 2012 high).
However, a move below 26.99 (31 December high) would delay bulls and shift the immediate focus back towards the 25.15/24.10 support zone (28 December low/5-month triangle base resistance, now support). Only a push below there would negate and expose 18.87 (12 November low).
Trading Indication:
Short-term:
Buy Entry: near 27.50;
Target: 31.00 initially (12.7%) and higher;
Stop Loss: below 26.80 (2.6%)
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