Skip to main content

Facebook (FB): Buy, Sell, Hold?

Facebook (FB) stock price recently took a major dive, dropping from the high of $195 on February 2nd down to $159 on Friday March 23rd.

Is this a good time to buy? Well, let's take a look at the chart and see it says.

Please note that when I do a stock analysis, I generally look at the daily chart. However, with FB chart I will be looking at the 2-day chart, simply because it seems to be a bit more accurate. Here are my analysis.

1) Price recently broke below a long term support trend line.

2) Price is now testing the bottom of the flag.

3) If support holds, price might get a bounce to retest:

- the support trend line that was just broken;

- the moving averages [50 SMA (blue line) and 34 EMA (purple line)];

- and possibly the top of the flag.

4) If price is able to break above these key resistance areas, the next targets are 185.60, 194.99, 209.73, 229.13 and 248.12

5) But if any of the above resistances hold price down and the bottom of flag fail to hold support, price will test the double support down at 154.97 and the ascending trend line.

6) If these support areas fail, price will plunge, testing the 200 SMA (red line), 143.06, 131.24 and possibly mid channel down at 122.27.

2-day chart

2-day chart

Good trading!


Trading Risk Disclaimer

All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities.

Popular posts from this blog

Kal's Option Trade of the Week: QQQ Short Put Vertical

This week we are going in with the Vertical option strategy on QQQ (Nasdaq ETF). The reason for choosing this option trade is that we are learning to choose a direction and how to trade that choice. QQQ has been on a crash course recently to the downside. As contrarians, we will bet the stock stops and heads up from here over the next 45 days and use a Short Put Vertical to trade that assumption. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability

Crypto Market Update: Bitcoin and Ethereum

Today we take a look at the technicals for Bitcoin (BTC) and Ethereum (ETH). Watch this video to get the technical insights. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is not an offer to buy or sell stocks, cryptos, forex, futures, options, commodity interests or any other trading securities. From  Coinbase Bitcoin The world’s first

Kal's Option Trade of the Week: IWM Iron Condor

This week we are going in with the iron condor option strategy on IWM Russell 2000 ETF. The reason for choosing this option trade is that with earnings season approaching, it's hard to find stocks to trade. Rather than waiting for the earnings season to end, the iron condor option strategy on the IWM provides a valuable alternative. Also, in recent years the market itself has become way more volatile, which makes trading index ETFs more appealing and, to some extent, safer. Watch this video to get the trade details. Hope you enjoy it! Kal Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high ri