Wednesday, June 6, 2012

FB-Right According to plan

Here's yesterday's update for FB, note the head fake expectations on the bearish descending wedge.

The second set of July $25 calls are in the money now.

 FB's bearish descending wedge consolidation/continuation pattern after an extended downtrend, this is what bears were looking for to short, ultimately it looks like it is turning in to the bear trap we expected.

 The 2 min chart in a strong leading positive divergence

 The 5 min chart over the course of the descending triangle with a large leading divergence today alone, price responded.

 The longer view-this 60 min positive divergence after nearly 2 weeks of trend confirmation suggests this will be quite a large move.

I'd like to use a wider Trend Channel than 60 min, but there's not enough history in FB for anything wider at this point, the current sop is just under $26, avoid whole number stops.

It looks like FB is coming together, this should be interesting.

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