FB Update

I had a couple of emails about FB and my reply has been the same, "If you are trading around FB then I would use a trailing stop in this area, if you are holding for the longer term, then be patient and you'll probably get a chance to add on a pullback soon".

To me FB is near some stiff overhead resistance, it's near a breakout to stage two mark-up and it is also quite extended so just a normal reading of the price chart only would tell us to expect FB to pullback a little and gather some strength before making an attempt to break out to stage 2, especially being this extended with no real pullbacks yet. Here are the charts and some possible trailing stops as well-I personally would only take partial profits on a trailing stop and leave some long exposure to FB and hope to add the partial shares potentially sold, back at lower prices on a pullback.

 Here's the daily FB chart and there's quite a few areas of overhead resistance here, which is also close to where a breakout from the base would be. The nearly straight line advance has had few pullbacks, no real consolidations at all and therefore is extended, a pullback/consolidation would most likely be beneficial here.

 The 1 min FB chart has seen some deterioration since those emails earlier this morning.

 Lets put that 1 min chart's trend in context though, very nice.

 The 2 min chart is also seeing some weakness migrate over so this could very well be the real deal for a pullback.

 The 3 min chart is also showing the same.

 The 5 min chart is yet to show that migration of a negative divergence, but it is very possible, then the pullback probabilities increase even more.

 The fact there's negative divergences on the 10 and 15 min chart tell me that FB was likely to see a pullback before continuing higher, the fact the 30 min chart looks good tells me that after a pullback the probabilities are high that FB continues higher.

 The 30 min chart, all makes good sense right now among the different timeframes and offers both a couple of plan and a probable opportunity.

 The Trend Channel 60 min chart is pretty close, it had 1 candle that stopped out at the red arrow, other than that it held the entire trend up on this leg.

Here's the daily Trend Channel trailing stop.

Other possibilities include the 10 day moving average as the first pullback to the 10-day on a X-over Screen initial long call. Also the 50 bar 30 or 60 min chart works well, depending on how tight you want a trailing stop.

Again, I would only take partial profits and leave at least half of my FB exposure still long, if you don't mind a little drawdown, I can also see just being patient and leaving the position alone, I suppose that depends on whether you have the time and/or want to add.