FB, daily
Summary
A crazy day for FB traders. The hyper-jump briefly hit $24.98 (although not shown on this chart), but we closed in the low 23s. Still, it was a massive jump, and something I was concerned about. I was sorely tempted to short in the past few days, but the daily charts said 'NO!', so I managed to avoid this bear massacre. I will certainly look to short the FB though in the days ahead though.
Unlock the shares!
In a few weeks, November'13th, FB will be unlocking around 1.3bn shares. Despite today's hyper gains, how is Mr Market going to mop up some of these shares, many of which will doubtless be sold - not least after today's price jump?
Holding to my original price targets...
Bears should seek a break of the Sept' low of $17.55. That should open up $15, and a likely floor in the 12/10 zone.
If the main market slips below sp'1300 late this year (whether due to fiscal cliff concerns, or whatever), FB could still hit single digits.
Fair value remains $4, and I would not be buying under any circumstances. There are far better places for my $.
