Watch How FB Acts Here
Given the run that the market has had over the last 8 weeks or so, it's been interesting to see how some of the largest / highest flying tech names have acted individually. One of the ones that has caught my attention - for the wrong reasons - has been FB, and its shocking level of underperformance to the market as a whole. To me, the level to watch here is 244, which is coincidentally also near the 200 SMA.
My game plan is to watch how FB acts should it come into this massive support zone. Once the stock makes a low of some sort, I'll be looking for a long to take, risking to that new low (on the daily chart). I think the bounce potential is here, especially if we see a re-rotation into big tech once the election overhang is finished and generally weak NMI readings become stronger. FB's fundamentals remain very strong, and any news about a breakup would be highly bullish for the stock in the long run. If FB makes a low, followed by a lower high and a lower low, I'll know that the weakness isn't over and that it will need more time and another support zone to act as a bounce catalyst. I would play this with stock unless the IV Rank < 35.
My game plan is to watch how FB acts should it come into this massive support zone. Once the stock makes a low of some sort, I'll be looking for a long to take, risking to that new low (on the daily chart). I think the bounce potential is here, especially if we see a re-rotation into big tech once the election overhang is finished and generally weak NMI readings become stronger. FB's fundamentals remain very strong, and any news about a breakup would be highly bullish for the stock in the long run. If FB makes a low, followed by a lower high and a lower low, I'll know that the weakness isn't over and that it will need more time and another support zone to act as a bounce catalyst. I would play this with stock unless the IV Rank < 35.
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