Good’ol Marky Mark Zuckerberg is getting grilled by the House over the last two days because Facebook sells your data so should you sell the stock?
I’m not sure why anyone is surprised he is involved with shady operations. If you’ve seen the movie about him (which was pretty good by the way) you know he stole the idea for Facebook.
He eventually settled out of court for an undisclosed sum of money so you know it was massive. He also screwed one of his very good friends who was the co-founder out of the company. Needless to say he is out to get his and everyone else be damned. Facebook sells your data, should you buy or sell the stock? Let’s look at the charts.
Back to the Middle
Facebook (FB) has retraced back to Andrew Pitchfork’s midlilne which also is very near the 50% Fibonacci retracement from the last pivot point (funny how that works). The stock hasn’t broken down yet and I still think it will go back up to at least create a double top near $195.33 before it heads down.
High Volume and a Gap
There is a gap between $177 – $181 and I love gaps coming back and getting filled: https://evancarthey.com/goldman-sachs-predicts-gbp-drop-another-25-true-false/. But currently price is hitting off of the 50% Fib retracement level (to of gray box) from a move and the top of AP. For tomorrow there won’t be much movement to the upside and more than likely to the downside. If I scalped then I would be looking for shorts here.
Also look at the super high volume that started on 3/19 and has held steady at being higher than average. Shares are getting moved around now. If this move to the downside had low volume then going long would be what I recommend but this signals the top may be here.
My No-Hedge Analysis for Facebook Sells Your Data
Facebook is showing signs of weakening but I think there is one more move higher to the previous high of $195.32.
9 out of 10 gaps get filled so I think price goes back up in the next couple of weeks to fill that gap and then acts like it is breaking to the upside. It creates a new high on low volume. Everyone thinks the trend has resumed to the upside but it is just people getting trapped on the wrong side.
So for the next day or two look for resistance and for opportunities to short Facebook if you scalp. For the next couple of months look for Facebook to grind higher and create a new high above $195.32. After that happens don’t get caught because I believe the trap is set and that is where the downward move will begin.
