A look at Facebook Inc. — Pre-earnings run?
Facebook Inc. ($FB) averages are at $24.21 (21 day SMA), $25.17 (50 day SMA), $25.60 (200 day SMA). Over the past 52 weeks FB has traded from a low of $17.55 to a high of $32.88. FB was last at $25.34 on a volume of 19,181,900. Average daily volume has been at 39,207,800.Facebook (FB) has been punishing the bulls for quite a while, peaking in January and trending lower until bottoming in early June. Since then, the stock has been moving higher ion a bearish wedge pattern. Let’s look at the chart.
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Notice how the stock has finally regained the 50-day moving average. That’s important, but the real test of this nascent uptrend will be a pullback to $25. If such a pullback sparks aggressive buying and the stock holds above that level, then we’ll probably see a nice move into earnings. The company is due to announce earnings on July 24th, which gives the stock 2 weeks to make its move. If $25 does not hold as support, I would not be buying the dips. After all, lower highs and lows are not the things that uptrends are made of, right?
Facebook Inc., is a social networking website which builds products that creates utility for users, developers, and advertisers.
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