If you plot Fibonacci lines over the first and second day, you can see that - after the short-lived bounce on day 2 - price gapped down below the low and then tested that low as resistance multiple times over days 3-6. It then started a three day move down that culminated with price nailing the Fibonacci extension and breaking below it late today.
I offer no predictions, but it seems to be at a decisive point here. It can either form a "Beyond the Fibonacci extension" setup and move down to the $24-$25 range, or it can retake the 100EMA with the potential to make it back to the retracement zone.
Tomorrow will be interesting to watch. All in all, I'm glad I avoided the Facebook hype!
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Wow, there is some good long potential if it retakes the 100EMA. I will keep an eye on this one.
ReplyDeleteThanks for reminding me of my FB loss!
ReplyDeleteHGN
Whats happening tomorrow?
ReplyDeleteRan across this good article on the future of Facebook and Google:
ReplyDeletehttp://www.robinsloan.com/note/pictures-and-vision/
Morning gap didn't hold - I'm betting on your lower target.
ReplyDeleteBe careful with FB, too new, or too many unknown unknowns to swing trade or hold for any real time.
ReplyDeleteThere are still a lot of people who bought at the high of $45 and are waiting for an opportunity to break-even.
If it moves back to the retracement zone and you exit with your profits, you'll be out long before $45.
ReplyDeleteDown she goes, still.
ReplyDelete