Overview of Technicals and Fundamentsla:
Facebook was one of few stocks that outperformed market after its earnings release. On earnings day it gapped up huge and closed above an important technical level $108. Then we saw two days of nice follow through and on third day it formed nice top and tail candle with high at $117.59. Usually, such candles are good sign of slowing down and leads to some kind of pullback or consolidation or maybe even reversal, like in case of Facebook.
Trade and Risk-management
Now, it pulled back a bit from low at $96.82 constructing a nice bear flag pattern. Break and close below $100.24 will trigger entry short with stop above $105.11 and targets at $94, then my long-term target is $86.
Overall market is still bearish and could help to drive this stock lower.
Facebook was one of few stocks that outperformed market after its earnings release. On earnings day it gapped up huge and closed above an important technical level $108. Then we saw two days of nice follow through and on third day it formed nice top and tail candle with high at $117.59. Usually, such candles are good sign of slowing down and leads to some kind of pullback or consolidation or maybe even reversal, like in case of Facebook.
Trade and Risk-management
Now, it pulled back a bit from low at $96.82 constructing a nice bear flag pattern. Break and close below $100.24 will trigger entry short with stop above $105.11 and targets at $94, then my long-term target is $86.
Overall market is still bearish and could help to drive this stock lower.