Here’s my take on Facebook (FB). Friend it. (June 23, 2014)

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Let’s look at Facebook ( NASDAQ:FB ), here’s why: I think this stock is getting ready to go a lot higher. It had been in this consolidation here, broke out right here, traded sideways, broke out again right there, traded sideways, so guess what I’m expecting it to do? I’m expecting this stock to breakout above 66.00. It’s trading in a tight volatility squeeze, volume has been lower than average during this consolidation, that’s what we like to see.

We like to see a stock in consolidation trading at lower than average volume, because what it tells us is, by definition, there’s not a lot of activity, which means you’re not seeing a ton of distribution or really a ton of accumulation either. It’s kind of like nobody cares too much about the stock, there’s not that much aggressiveness either by the buyers or the sellers that’s moving the stock around. When there’s not that movement of a stock one way or another, that gives a really good potential for a nice move; because one thing we know, stocks don’t stay static for very long.

So what I would suggest doing is, set a price alert, set a price alert on $66.00, I’ll set it on 59.95 for me, because I want to know when this stock starts leaning up against $66.00 so that I can watch it and maybe catch it a little bit early. I think Facebook ( NASDAQ:FB ) works, and I think that this is a stock that you want to be long; I think it’s going to work for you too.

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