Should we “friend” Facebook, or is it about to rip your face off? (November 17, 2012)

by DAN FB 
I’m Dan Fitzpatrick at StockMarketMentor.com on Saturday, November 11th. In this video we’re going to just look at Facebook ( $FB Facebook Inc ). This stock is still completing a base, but I think it’s definitely worth watching; of course it would’ve been nice if you bought it right down at the bottom here, but you probably didn’t do that. Here’s the thing; this is the box and the stock looks like it’s about to come out of the box. The reason that this stock has been under, you know, under distribution is in part because a lot of folks are afraid to buy it with all these outstanding shares that are locked up and that they’ve been concerned about the lockup expiration. Well, the last lockup expired, at least that I’m aware of, somewhere down in this area. So what’s happened? The stock is actually rallying at that point so this is under accumulation. This pop here, which was on earnings, has now fallen all the way back to this level, let me zoom in here so you can really see it, it’s fallen back to this level, which is actually a higher low both within the Bollinger Bands, look how far up above the upper Bollinger Band this is relative to that, but also on an absolute basis, not by much, but this higher low is a little bit higher than this one here so we’ve got really two technical events that are important. What I’m suggesting you do is watch this level here, watch the high of $24.25, seventy-five cents or so, above where it is right now. A couple ways to trade Facebook ( $FB Facebook Inc ); first if you wait for it to close or move above that $24.25 area you’re probably going to catch this for a nice ride to the upside because it’s kind of been bucking the trend of the market; the market’s been going down, Facebook ( $FB Facebook Inc ) is moving up. Another way to trade this is, if it does not break out, but instead pulls back, look to buy it as close to the 50-day moving average you can; either way I think you’re going to make money. Okay members, get over to the Strategy Session now; we’ve got three videos for you and I’m going to tell you at least what I think we need to do this coming week to make some money.

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