Mar16
Reader Submission: Facebook (FB)
on March 16, 2013 at 7:19 amPosted In: Featured Stocks, Reader Sumbissions
We have some great readers out there and here’s a chart from one of them!
Here at Stockineer, we are in the process of writing our story on Facebook…well, we’re not writing a story on our Facebook walls about the beers we’re drinking or awesome parties we are going…we’re writing about the stock. Ah, never mind. Click here for Stockineer’s FB article. We are a community of Stockineers here and everyone gets a voice! Sasha has made some good observations that are worthy of discussion, so let’s see what Sasha has to say.
I like the way you put your own thoughts to what I am seeing in the chart. I interpret myself to be a rookie in Techincals, though always eager to learn more. Which makes this a perfect place to acquire more knowlegde.
When it comes to slow stochastic oscilliator, I am waiting for it to cross as you mention. It is only when it crosses up/down that I will be willing to take a position in a stock, either long or short. As we saw yesterday, the stock closed below the $27 line, and fibonacci support at $26.83. Slow stochastics are still pointing straight down and it may take another few more trading days before the price reverses short-term. In other words, it would not surprise me if the stock drops to $25 next week.
The broadening wedge that you have drawn on page 3 here shows perfect resistance level at $25. This is where we also find 50% fibonacci retracement level and bounce off from $25 level from Dec.28th! Which means, there is good resistance at that level!
As you also point out in your analysis, the CCI, RSI and Full Stochastics are all bullish, while the price has been falling. In other words, we do have a divergence there. I am not trying to predict anything, but looking at the charts, it looks to me as if price will drop to $25 and bounce off from there.
As of this very moment I do not have any FB-stock either, but will be willing to play a long position at $25 based on the information in the chart.
Pardon me, it should be “support” level, and not resistance level at $25
Cool stuff…that means we’ll be watching it together. Thanks again for your chart.
Pre-trade is down to 26.25 this very moment. Will be interesting to see how the stock behaves this week. I am certain we will hit $25 mark. I also believe that there are many investors/traders on the line waiting for this to happened.
The market may have given us a clue today. It showed weakness straight down to $26 with little resistance. Keep an eye on that level for right now. I think there’s a lot of folks waiting for $25.
Sasha has an uncanny knack of fitting Fibonacci charts. Hit your retracement level in afterhours and bounced right back.
Watch the fibonacci $26.83 level, which now is a resistance. If we break through this it may be a buying opportunity short-term. Though these starts with sudden peaks have a tendency to easy off during the day. Slow Stochastics are about to cross though. So I am keeping my eyes close to this one
In the meantime Sasha, BAC had an upward breakout today. I’ll likely write about it tonight if I get time. It’s another featured stock that we’ve been following so the charts are already here.
Nice, I just looked at the chart for Bank of America! Even the Bollinger Bands indicate a breakout, even though the RSI is kind of screaming oversold at 83. Is that a IHS or some sort of a tiny cup and handle it broke through?
I will keep this discussion free from this thread, but had to comment hehe.
Sasha,
Please see my comment above regarding your target.
Bob,
I am kinda in the blind on FB now, mainly because of the priceaction AND seeing the convergence between the price and the indicators(and the indicators are in the oversold level). I am no longer sure that $25 is as good entry as I anticipated last week. The drop yesterday came on a decent volume as well, 43 million shares. Now our $26.83 Fibonacci line is a resistance and no longer a support. Hmmm…
I will no doubt monitor that $25 line today, as a drop to $25 is roughly 2,5% from yesterdays close.
Hi Sasha,
The FibDoctor is extremely bearish. Target $16.09
Check out his StockTwit:
http://stocktwits.com/message/12677523