Facebook (FB) is finally printing a 200-day moving average that’s reliable. Let’s take a look. (April 03, 2013)
FB
Good evening Dan here on Wednesday, April 3rd. In this free video we’re going to look at Facebook ( $FB Facebook Inc ). First of all full disclosure; man overall Zuckerberg has unfriended me. I have not been able to make much money on this stock; I’m probably maybe even negative here. You may say, “Well then if that’s the case dude, why are you featuring the stock?” Well I’ll tell you why, because it’s still a chart and even a blind dog finds a bone if he just keeps digging long enough. But here’s my take on Facebook ( $FB Facebook Inc ). First of all let’s just walk through it, uptrend or downtrend? Downtrend, uptrend here, but overall this stock has been a dismal failure, there’s no question about it. There’s a low right here, we’ll call it $25.00. The thing that’s interesting to me now is that unlike all the stuff back here we’ve got enough data to start building a 200- day moving average, which is now right here. So for the first time in the history of Facebook ( $FB Facebook Inc ) stock we have an opportunity to draw a bona fide support level and say, all right 200-day moving average is here, the stock closed like two consecutive days below that, but is now trading up above it. So here’s the deal; if you’re a Facebookian ( $FB Facebook Inc ), you really, really love this stock or you want to, or you’re all over Facebook ( $FB Facebook Inc ), try to find my account on Facebook ( $FB Facebook Inc ), you can’t. Maybe you can look under Detective Spooner. But anyway look, right here is where this support line is, you’ve got a look at this and say, all right, if Facebook ( $FB Facebook Inc ) trades back below the 200-day moving average, and back below this low, then this downtrend remains intact, you don’t want a piece of it. But until that happens, if you want to be owning Facebook ( $FB Facebook Inc ) this is actually the time to get long because you can define your risk, you can even set your stop up here, back barely below the 200-day moving average. But what we’re really looking at is this; 200-day moving average is where we’ve got this line in the sand. So as long as this stock stays above that level then this is an okay time to be friending Facebook ( $FB Facebook Inc ), so to speak. Okay members get to the Strategy Session, interesting day in the market today. We’ve got Kim Jong-un, nut job over in North Korea dealing his stuff, whatever. And then there are also some things with the jobs numbers and all that, so there’s a lot of reasons to be moving your stuff around in the market and I’m going to go into some yield hogs and show you just had to do that. Free Chart