After hitting T1, FB bounce to make a marginal new high while further expanding the already large negative divergences. Note how well the 38.2 & 50% Fibonacci retracements now line up with T2 & T3 (unadjusted since the short entry on Oct 1st). The social media stocks continues to be one of my favorite sectors on the short-side right now and FB ranks amongst the most promising shorts within that sector. As Facesbook still offers an objective entry or add-on at current levels, it remains a Short Setup as well as an Active & Completed Trade (since T1 was already hit). Previous 4 hour charts followed by the updated 4 hour chart.
- Oct 1st FB 4-hour chart (entry)
- Oct 8th 4-hour FB chart (T1 hit)
- Updated 4-hour FB chart