Facebook +27% Since Oct 9

Since last Friday's low at 18.87, Facebook, Inc. (FB) has climbed to 23.93, or +26.8%, which has propelled the stock from the lower side of its 4-month base pattern right to the top side.

My near-term pattern and momentum work are warning me to expect the current upleg to stall, digest, and perhaps correct some of the week-long gains.

While it is conceivable that FB will spend the next several trading hours and/or days consolidating above 23.00, my optimal scenario calls for a correction into the 22.00-21.60 support zone prior to the emergence of a new, equally as powerful upleg that will hurdle the Oct 24 high on the way to 27.00-28.00.

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!