A Look at FB Ahead of Q2 Earnings

Heading into this evening’s earnings report, Facebook, Inc. (FB) stock finds itself trading at 4-1/2 month highs, 28% above its post-EPS April low at 54.66, and in mildly overbought condition.

This suggests strongly that the company needs to produce stellar results for Q2 to trigger a sustainable positive-price reaction from currently “elevated” pre-EPS price levels.

Let’s notice that FB is pushing up against its July high at 69.96, as well as its April-July upper-channel boundary, now at 70.80, which, if hurdled, will point towards a full-fledged test of its March all-time high at 72.72.

Only a sustained break of 68.00 will begin to inflict initial technical damage to the currently bullish near-term set-up, while a break of 66.00 is needed to neutralize it altogether.