Scott checks-in on that $FB Chart again as had a nice bounce today! – January 6, 2021


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This is Scott with your Chart of the Day. I want to check in on Facebook ( NASDAQ: FB ). On December the 30th I mentioned Facebook ( NASDAQ: FB ) as a potential chart to watch into the new year.

I was looking at what could be an inverse head and shoulder pattern. Of course, we have the left shoulder here, the head, and maybe today we have what is forming a right shoulder. The only thing that makes me really think that is the fact that we had a pretty good upside reversal today, back above the 50-day moving average coming on higher than average volume.

What I want to see from Facebook ( NASDAQ: FB ), ideally, is a strong move above that 353.00 level. But if you are an active trader, someone who is able to watch the market, I think you could potentially get an early entry if we can break above and hold above this downward-sloping trendline. And so I think it makes sense to have an early entry alert right around that 339.50 level.

Now, you would only want to hold that position if it is able to hold above today’s intraday low. I think if we slice through, at any point within this pattern, slice through 322.00, the stock is making a lower low, you will want to get out of the way of that. But again, I think that this is a potential setup, running into their earnings, which is coming up near the end of the month.

Keep an eye on Facebook ( NASDAQ: FB ). I covered it, I think Dan talked about it the other day as well. It is definitely one of the charts that we are stalking in this market as it is kind of chopping around.

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