April Pullback Retracement Play in Facebook FB

Bycjrosen

Facebook (FB) shares face a major “make or break” support challenge at a key opportunity level for traders.

Let’s set the chart up to plan a potential “support bounce” or “alternate trend reversal breakdown” play for FB.

We’ll start with the broader Weekly Chart for a top-level reference:

Facebook FB Weekly Chart Technical Analysis Trades

We see a strong uptrend took shares from the $25.00 per share level in 2013 to the recent 2014 peak above $70.00 per share.

A weekly chart or steep retracement (sell-swing) took price to the potential support of the rising 20 week EMA into $60.00 per share ($59.80 at this moment).

That’s where we’ll focus our attention as we plan a potential support-bounce play off this level.

Keep in mind that a failure or immediate breakdown under the $60.00  per share level opens a downside pathway toward $50.00 per share as an “alternate breakdown” thesis.

The Daily Chart reminds us why $58.00 and $60.00 are the current focal prices:

Facebook FB Daily Chart Fibonacci Support

We’ll start with the small “triple top” or horizontal resistance through January 2014.

Next, we’ll incorporate the rising 20 week EMA (near $60) with the 50.0% Fibonacci or “halfway point” of the November to March recent rally ($58.00).

Note the spike reversal candle develop from the underside of this pivot level.

It’s simplified analysis/strategy, but we’ll look for a continuation “support bounce” play up into the 20/50 day EMA cross-over level near $64.00 for an initial target, and then a breakout through EMA resistance to open a target pathway toward the $72.00 divergent high from earlier in March.

Keep these simple yet overlapping levels in mind when planning trades in Facebook (FB) stock.

Afraid to Trade Premium Content and Membership

Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.

Corey Rosenbloom, CMT
Afraid to Trade.com

Follow Corey on Twitter:  http://twitter.com/afraidtotrade

Corey’s new book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).

Similar Posts

Short Squeezed Bullish Surging Market Update and Big Stock Scan May 8

Bycjrosen

The trading range continued which meant that today’s session was another expected bullish surge up away from support (which began Wednesday afternoon) toward the prior high target of 2,120. Believe it or not, the market is doing exactly what it should be doing, at least according to classic analysis. Here’s where we were, where we…

SP500 Linear Regression Chart and Trade Level Update

Bycjrosen

In the previous update about the “Trendline and Target Planning for the SP500,” we noted the index was at a critical inflection point and likely to reverse higher off the confluence support target to continue the lengthy uptrend in progress. I think we can all say that the market successful achieved its “support-bounce” goal better…

Charting a Dead Cat Bounce in SP500 and Russell Futures

Bycjrosen

Are we setting up the fall-leg (sell-off) of a Dead Cat Bounce? Let’s chart the @ES (eMini) and @TF (Russell 2000) futures contracts on the hourly basis. We’ll start with the @ES: During this morning’s live Market Briefing with TradeStation, I highlighted the potential for a “Dead Cat Bounce” pattern to complete to the downside…

2 Comments

  1. You focus so much on the down side it makes me think you are biased and thirsty for a $50-$55 trade. You had your chance at $57.98. Give it up with all this technical mumbo jumbo. Technicals can bite you on the ass as today's action proves. Good luck.

Comments are closed.