Quantcast
Facebook, Inc. (NASDAQ: FB) | The Mesh Report

Facebook, Inc. (NASDAQ: FB)

Christian Tharp, CMT January 9, 2020 Comments Off on Facebook, Inc. (NASDAQ: FB)

Facebook, Inc. operates as a social networking company worldwide. The company engages in the development of social media applications for people to connect through mobile devices, personal computers, and other surfaces.

Take a look at the 1-year chart of Facebook (NASDAQ: FB) below with my added notations:

FB has formed an up-channel chart pattern over the past 3 months. A channel is formed through the combination of a trend line support that runs parallel to a trend line resistance. When it comes to channels, any (3) points can start the pattern, but it truly takes a 4th or more to confirm it. As of yesterday’s move, it appears FB may have just hit its 4th point.

The Tale of the Tape: FB seems to have formed an up-channel. A long opportunity could be entered on a pullback to the channel support, which at this point seems to be around $200. Short trades could be entered at channel resistance or if FB were to break below the channel support.

Before making any trading decision, decide which side of the trade you believe gives you the highest probability of success. Do you prefer the short side of the market, long side, or do you want to be in the market at all? If you haven’t thought about it, review the overall indices themselves. For example, take a look at the S&P 500. Is it trending higher or lower? Has it recently broken through a key resistance or support level? Making these decisions ahead of time will help you decide which side of the trade you believe gives you the best opportunities.

No matter what your strategy or when you decide to enter, always remember to use protective stops and you’ll be around for the next trade. Capital preservation is always key!

Good luck!
Christian Tharp, CMT



Comments are closed.