FB - breaks below the bull flag

Facebook (FB) had rallied strongly from the $25 level, but had gotten stuck in the 33s. Today's 8% decline represents a VERY major break below what was a reasonably secure bull flag.

There really isn't any support now until a re-test of the $25 low. I don't expect that to hold.


FB, daily

Summary

First target is $25, where we may see a minor bounce, but it won't hold on a multi-week basis. Secondary target is the big $20, that too seems like it will fail to hold- assuming SP breaks <1200 by late August.

FB in the mid teens by mid September is now the target low for 2012.

Even at $12/15, FB is over-valued by a factor of 3.

Fair Value is $4, and I wouldn't be a buyer unless I saw <$1.50.

I'd rather buy one of those dirty coal miners!