FB was among the weak stocks during initial hour yesterday, losing 2.5% to a low of 317.37 before slowing gaining traction for the rest of the day, and recovering most of the initial dip to close a pin bar.
The case for a rebound soon is rather compelling due to
1. higher than average volume that formed this pin bar
2. the rebound occurred right after it tested the 200 day moving average
Hence I will long as the stock goes above pin bar high 324.5 with an initial stop a dollar below pin bar low at 317. Initial target @ 350 which is the 50% retracement up of the down swing AB (and a possible horizontal resistence there).
However there is a risk that earnings could disappoint on 25 Oct and any rebound could be short lived. Should this rebound fail, I will relook possible entries between 298 to 304 where there is a stronger zone of supports there.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade
The case for a rebound soon is rather compelling due to
1. higher than average volume that formed this pin bar
2. the rebound occurred right after it tested the 200 day moving average
Hence I will long as the stock goes above pin bar high 324.5 with an initial stop a dollar below pin bar low at 317. Initial target @ 350 which is the 50% retracement up of the down swing AB (and a possible horizontal resistence there).
However there is a risk that earnings could disappoint on 25 Oct and any rebound could be short lived. Should this rebound fail, I will relook possible entries between 298 to 304 where there is a stronger zone of supports there.
Disclaimer: TA is about improving our odds of a successful trade (not a guarantee). This is just my own analysis and opinion for discussion and is not a trade advice. Kindly do your own due diligence and trade