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Monday, November 26, 2012

Facebook new trading range

Nice breakout from 24. Looks like Facebook is approaching 27, and potentially a new trading range.


FB is about to approach a heavy resistance area while being very very overbought.  The easy trade from 19-27 is ending.  A new trading range will emerge, but it is too soon to tell from where.  The obvious is between 22-27.  Although 24 should act as the new base.  Given the shift in momentum and better perception from the street, if FB starts breaking through 27, the new range could be low 30s-to-24. 

Congrats to those that played the recent trade. As I have traded the stock pretty well, I am currently left with an initial position in FB. I would like to let this position ride, in hopes 27 is breached, and a higher trading range is seen. (The obvious technical stop out of the trade would be a breach in the 5 SMA. As FB is currently riding the moving average up.)

Fundamentally, I really do think Facebook mobile ads are not in the same league as general mobile banner ads. I think Facebook ads are far superior. Based on the chatter, the ads appear to be best of breed within mobile.

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