Facebook: The Big Fade

After a blow-out earnings report, so far traders have faded nearly all off of the gap in FB (Facebook Inc) with the stock now trading back down around the bottom of the rising wedge pattern. Since yesterday's post-earnings pop in the after-hours session, Facebook has given back nearly all of the 9%+ gains so far. FB is still on watch for another possible short entry. At quick glance, it looks like a solid move below 122 might provide an objective short entry but I'd like to confirm that with some of the near-term sell signals in the broad market that I'm watching for on the intraday charts.

2016-08-31T11:39:47+00:00 Jul 28, 2016 1:12pm|Categories: Equity Market Analysis|Tags: |2 Comments


  1. snp July 28, 2016 2:10 pm at 2:10 pm

    if amzn and googl both report positive, fb may rise in sympathy after hours just saying. that is one possible better entry. looks like the best entry was top of the wedge right at 133.91 last night.

    in response to this post, have you heard of strong gap ups vs. weak gap ups? the theory I have heard is the 2-5 recent daily candles on a gap up indicate the fadability of the gap. if price is trending up into earnings on a gap up its considered a weak gap up and fadable. if it was falling prior to a gap up its considered a strong gap up and more resistant to fading (possibly due to short covering and margin calls?)


  2. snp July 28, 2016 2:32 pm at 2:32 pm

    122.31 good place to day trade long on fb


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