Facebook (Code: FB) has broken above its downtrend line at USD21.50 last Friday. Yesterday, it broke above its horizontal line USD22.50. With this latest upside breakout, FB is poised to close the gap at USD26.80.
With the breakout of the downtrend line, we are likely to have seen the worst in the selldown in FB. Those looking to invest in this stock can slowly gain entry at the horizontal line USD22.50 (if possible). Those, with higher risk appetite, can consider a trade on the assumption that the stock is set for a rally to close the gap (as mentioned above).
Chart: FB's daily chart as at September 19, 2012 (source: Stockcharts)
Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, FB.
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