The Bounce in Facebook – JenkinsRM

The Bounce in Facebook

If you bought Facebook well in February or even this month, these are the levels and the right TIME to becoming out of most of this position and booking some gains. If we look on the attached chart, FB’s big move down at the beginning of February produced solid red for a week with a -17% drop. From here the market has now retraced 80% of that move and as such the odds of a drop from here are high. Yes price could retest the highs from Jan but the upside to 117 is small now compared to where the stock has traveled from.

Facebook Daily Chart

We are flat FB and will look to buy on the next multi-week drop in this stock.