Still tracking Facebook (FB)…and it’s close to hitting our buy signal. (February 05, 2019)FB
I want to come back to Facebook ( NASDAQ: FB ). I mentioned yesterday that I thought that a breakout above this 171.50 would be a good breakout; it would probably be a good entry because that would start the ball rolling and pushing this above the intraday high after that earnings report. The company reported earnings, strong, surprised the market, and then the stock has not come back. That looks kind of like a box that may not be filled so this is a gap that could actually hold.
So if you are buying the stock up here, it just didn’t fire off today, that’s why I am coming back to it. Because I don’t just say, “Oh, another day another stock.” We want some continuity here. Once you are in this stock keep your stop near the top of the box. Because you don’t want to ride this thing down like a fool, have it go down to 150.00 and then say, “Well, Dan now what?” I am telling you, you buy the stock on a breakout and then you immediately put a stop right around 164.50, something like that. And that is how you protect this type of trade.