Correction Time for Facebook?
From a P&F perspective, Facebook, Inc. (FB) has carved out a very near-term stair-step downtrend in the aftermath of its powerful post-EPS advance from 26 to a print high of 39.30.
Since the high, however, it has ratcheted down to a low print of 37.70, which now becomes very important "micro" P&F support.
If violated, it should trigger a press to and below 37.40 and will morph a micro correction into something deeper and more damaging.
For the time being, shall we say, FB is engaged in a contained micro pullback.
That said, to regain upside traction, the price structure must climb to a print of 38.90, which will neutralize the correction, and imbue the P&F chart with a much more bullish near-term pattern.
As of the moment, however, FB is in the middle of nowhere leaving it vulnerable to more backing and filling.