Facebook stock has taken quite a hit from its March 72.59 highs. Is this just a correction, or something more sinister?
So how far has Facebook ($FB) stock fallen from its highs? Let’s take a look at the daily chart zoomed out so we can get a clear picture.
From $72.59 to $57.24 is a 21% drop. A nice move if you caught the short. But does FB have further to go?
From my perspective, I see a nice head and shoulders top formation in the works, and we appear to be in a continuation pattern, taking a breather before another leg down. With a fib projection from the highs I get a target of $45.00 or $12.00/21% away.
That’s not a bad trade.
Let’s take a closer look at the 15 min chart:
As you can see, we’ve been bouncing around in the channel between $58.00 and $56.00 with the exception of one failed breakout attempt. Now we’re butting up on the 50MA.
I’ll be watching this level closely. No doubt, there are other, weaker stocks in the market right now, but if this fails, I’m going to be ready to go short.
Plus, it’s fun to trade the big names along with everyone else and see how you do.
Good luck everyone.
Disclaimer: I own 0 shares of Facebook, long or short, but that could change.