FB - set to test the $25 low

Facebook (FB) closed lower - in stark contrast to the main market, for the third consecutive day, -2.5% @ $26.89. Near term price action looks rather weak, the big $25 threshold is critical. If that fails, then sub 20s are again viable this summer.


FB, daily

Summary

Suffice to say, its somewhat amusing to see FB rolling over, whilst the main market just keeps on melting higher.

A break under 25 won't be easy, not least if the main market keeps on rising.

Yet on any basis, FB is over-valued by a factor of 4, if not..10.

Price/earnings do matter, at least across the longer term.