FB Follow Up

Earlier today in this post I said,

"If you are long FB still or are considering taking partial profits as FB is a longer term trade, I would strongly encourage an intraday trailing stop, but make sure it's wide enough to allow for consolidations."

Personally by now, whatever I wanted to take off the table in FB, whether a partial position/profits or the entire position and look for a better entry, I would have done that by now.

I said in the FB update the other day that was specific to a short trade that a member asked about, that shorting FB was not something I was very keen on even though I do think it sees a decent pullback. However if this one scenario does play out, then I would be much more interested in a swing short on FB, I still like the stock over the long term as a long position, but everything needs to pullback and be shaken out.

 Since this morning's nice move up, this is what happened to FB, pretty ugly, thus the trailing stop.

 Here's the 2 min chart with the reason behind the ugliness...

 3 min chart, note where it is most negative-at the price highs.

 5 min neg. suggests a decent pullback

 15 min overall trend suggests a decent pullback, but the uptrend looks like it will survive.


 It is the positive action recently on the 1 min chart in that volatile downside mess that interests me, this could lead to the move in which I would be interested in a FB short.

$28.88 is the level that needs to be broken with a negative divergence confirming the head fake move which should be no problem, note the ugliness today has turned in to a triangle suggesting a highly directional move. If that move is a head fake move up above resistance, then I'm interested in playing FB on the short side just for the pullback.