Monday, 25 November 2013

FB - H&S formation, downside to $35

Despite better than expected earnings recently, Facebook (FB) has struggled, and the AH high in the $56s now looks a considerable way out of range. Price structure is offering a very clear H/S formation, and with the $45 neckline broken today...downside target is a very obvious $35

FB, daily'2


A mere month ago, the upside target was a 'reasonably' comfortable 'low $60s'.

Yet..Mr Market has decided it is done with the momo stocks for this year.

NFLX, is another good example, reasonable results..yet..sold lower.

So...downside target is a very clear $35..possibly 32...before a ramp across the spring, maybe forming a double top in the 50s by late spring.