Thursday, 3 October 2013

FB - following the main market lower

With increasing weakness and volatility in the main equity market, even the momo stock of Facebook (FB) has started to slip, closing -1.9% @ $49.32. Mid term trend remains very bullish, but if the main market unravels, first downside support is a long way down at the 50 day MA in the low $40s.

FB, daily


FB has doubled up since June, and the recent few days have been forming what might be at least a short term top in the $50s.

First downside target is the 50 day MA, currently $41, and which will be in the $45s within 2 weeks.

If the main market can hold - and rally from the critical weekly low of sp'1627, then FB should comfortably hold the mid/low $40s, before a renewed power-ramp into the yearly close.

Best case upside for the FB bulls....$60/65.