The Seriously Strong Uptrend and New All Time High for Facebook FB

Jul 28, 2016: 12:11 PM CST

“Strong stocks tend to get stronger.”

Facebook (FB) shares gave us another example of this powerful investing (and trading) concept as a supremely strong uptrend continued with a breakout to a new all-time high this morning.

Here’s the weekly chart in all its bullish glory:

We define uptrends by the series of price highs and lows (higher highs and higher lows) along with the rising moving averages.

The chart above gives us a textbook uptrend and in this context, it’s expected that shares would continue to make additional highs.

The uptrend is actually accelerating, as we can see in the blue trendline connecting the highs.

At Afraid to Trade – and hopefully in your trading strategies – we focus on “strong stocks getting stronger” which has us buying pullbacks in uptrending stocks (as opposed to buying down-swings in downtrending stocks, hoping against the odds for a reversal).

Zooming in, we can see the Daily Chart and today’s new gap-up earnings high:

The $115.00 level was a critical support and reisstance pivot as was $110.00 per share.

We like to buy pullbacks (retracements) within a larger uptrend often seen on the weekly chart.

Bullish (buy) volume surged the last two days in Facebook as price also surged with a gap-up into $130.00.

We’re seeing a natural pullback away from $130 as the stock is overextended from its 20 day average at $120.

It’s late to buy but one can keep this stock on a watchlist and enter on the current pullback.

If instead buyers just surge price even higher above $130, aggressive traders can enter a power-trending stock.

Either way, let Facebook be a great example of our “strong getting stronger” concept of stock trading.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership 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 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).

2 Comments

2 Responses to “The Seriously Strong Uptrend and New All Time High for Facebook FB”

  1. Facebook Stock in Strong Uptrend - TradingGods.net Says:

    […] By Corey Rosenbloom […]

  2. Rajesh Says:

    The trend is indeed pretty high, it will be interesting to see whether this is going to continue or not, but there is really no reason for dropping apart from the routine pullback, I believe we could do well to enter here, as it will bring profits. I mostly prefer to go with long term trade and it’s easier with broker like OctaFX since they have swap free account, so through that I can work really nicely and it leads to some serious profits to me.