FB Update

FB is rallying off intraday lows... 

I started a very small position there in calls with the intention of adding to it at better prices, we have better prices and some upside momentum, it's a difficult choice as to whether to add or not here. I only have about 20% of a normal size position which is half of a speculative position so adding here wouldn't be very dangerous, but lets look at the probabilities.

 Here's the afternoon rally off the lows, the thing I do like here is the volume on the downside move. This kind of volume can sometimes be like mini capitulation.

 The FB 1 min chart chart shows the positive divergence for the rally, but it also seems to be telling us there's some selling in to that move.

 Overall, what I wanted to see on a pullback was positive divergences, the 2 min chart is showing me that

 So is the 3 min, but this is rather short, there are few moves in the market that take off from a "V" reversal, especially in stocks with a large float.

 The 5 min chart seems to be showing a strong leading positive divergence, it seems the price concession in FB is drawing in buyers in underlying trade, there's certainly enough supply.

Overall though, the 15 min chart to me looks like it needs a bigger base, especially if FB is going to try to tackle resistance and move to stage 2. I also have to consider what I think the highest probability is for the market over the next day or two and factor that in to my FB analysis, for now I'll be patient.