The question I want to answer today is should you buy or sell Facebook. Just like most tech stocks since President Trump was elected Facebook has made a major move up in a little over a year from $113.55 to currently at $175.99.
It is still in a very strong uptrend in Andrew’s Pitchfork from the initial move higher where I measured it from. The magenta line of support is still very far from the current price.
So the key is to wait until the trend breaks before you start thinking about shorting.
As you can see from the charts below, Facebook is in a long term uptrend. I just want to point out what to start looking for because a retracement will eventually happen.
Buy or Sell Facebook
Price has taken a brief break from its run up when it hit near the 361% fib extension but from the last chart it is still well within AP’s lines which shows the bias is still to the upside. So the trend is still to the upside as you can see from the trend-line and from the Andrews Pitchfork channel.
Here is the chart for the short term play if you are looking at getting long. I am not providing a short b/c I do not see any.
Long Play
1. In the very short term you can look to long when
a. Price closes higher than the previous day
b. OR price closes above the blue line
2. 1st exit can be $186 or until price breaks out of the
long term AP from the previous chart
3. Stop loss is currently below $173
Conclusion
As always I would recommend to wait until the trend is broken before you think about shorting. Since Facebook has had a big run up the only setups that are presenting themselves are short setups.
Keep on checking https://evancarthey.com for the best news and reviews on everything regarding stocks, Forex, futures, and cryptos. If there is any company or trade-able contract you want for me to go over then just let me know and I will be glad to do so.
It doesn’t really matter what it is, as long as the charts can pull it up then I will be glad to do so.
