Technical Signal Only: No fundamental catalyst other than extremely high valuation of $185 billion for a company doing $7.8 billion in revenues with $1.5 billion on the bottom line.
The lack of upside movement after the $19 billion WhatsApp acquisition is potentially another sign that this is ripe for a correction.
I placed all of the downside movements on the chart of the previous times FB had the current signal, which is a 21-day Commodity Channel Indexcross-under the 100 reading. (Said another way: A 1-standard deviation movement away from the 21-day moving average, then a drop back under that 1 standard-deviation level).
From my Tim's "TIME AT A PRICE" methodology, the rally time for FB is also complete, so there is a chance that there are very few buyers left supporting the stock here as the time of the rally equals the time of the accumulation.
I think a move to $65 would be ideal for this setup, but that is just a guess. The best thing to do is to watch it closely and move your stop down as it falls.
Tim
7:47PM EST 2/27/14
The lack of upside movement after the $19 billion WhatsApp acquisition is potentially another sign that this is ripe for a correction.
I placed all of the downside movements on the chart of the previous times FB had the current signal, which is a 21-day Commodity Channel Indexcross-under the 100 reading. (Said another way: A 1-standard deviation movement away from the 21-day moving average, then a drop back under that 1 standard-deviation level).
From my Tim's "TIME AT A PRICE" methodology, the rally time for FB is also complete, so there is a chance that there are very few buyers left supporting the stock here as the time of the rally equals the time of the accumulation.
I think a move to $65 would be ideal for this setup, but that is just a guess. The best thing to do is to watch it closely and move your stop down as it falls.
Tim
7:47PM EST 2/27/14
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