Whilst the broader indexes saw moderate weakness, Facebook (FB) built solid gains, settling +4% @ $48.62. The recent break of the neckline - of an apparent H/S formation, has turned out to be a clear failed bearish move. Today's strong closing gain fully negates the initial break.
*first, a reminder on the H/S idea...which is now to be trashed.
The above outlook was a very valid formation just over a week ago, with the break below the neckline into the $44s...downside to $35 was very viable.
Yet, it would seem Mr Market can't resist the FB, and the low $50s now look a given before year end.
FB in early 2014
The real big issue now is what will FB earnings be in January? Q3 earnings were good, with an AH spike into the $56s, but the market simply sold into those good numbers.
Can FB soar into the 60s by early February..if earnings continue to be good?
Assuming the market holds 'broadly' together..including the next debt ceiling/budget issues in Jan/Feb, it would seem more than likely that FB will be breaking new upside territory in early 2014.