FB, daily
Summary
The over hyped..and still grossly overvalued FB had something of a very significant reversal day. Yet there remains a huge amount of hysteria surrounding this stock, and it could just as easily reverse back higher tomorrow.
For the bears, FB needs to close outside of the current channel, and back <$25.50, which will open up the 22/20 zone.
At the moment, considering the indexes are still holding together, it would seem FB will not be trading in the teens any time soon.
The long term fair value of $4 remains unchanged though, and as many recognise, the mobile advertising market is deeply misunderstood by the market. All those expecting multi-billion profits in the mid-term are going to be real disappointed....just like all those who got involved in ZNGA, GRPN...and all such social media nonsense.
