Wednesday, 9 April 2014

FB - bouncing with the broader market

With US equities continuing to bounce from the sp'1837 low, Facebook (FB) built significant daily gains, settling higher by 7.2% @ $62.41. Near term outlook is arguably unstable, and the momo stocks remain very vulnerable to another wave lower.

FB, daily


Suffice to say, today was probably just day'2 of a natural bounce. A lot of momo-shorts surely got burnt today, surprised by the latest 'fedspeak' nonsense.

First key resistance is the 50 day MA in the $65s. Right now, I find it hard to believe FB - along with any of the other momo stocks, will not see another wave lower in the near term.