Working Money magazine.  The investors' magazine.
Traders.com Advantage

INDICATORS LIST


LIST OF TOPICS





Article Archive | Search | Subscribe/Renew | Login | Free Trial | Forgot ID?


PRINT THIS ARTICLE

MACD


Facebook Facing Up?

08/30/13 10:33:41 AM
by Jayanthi Gopalakrishnan

Shares of Facebook have been bullish of late. Can we expect a continuation going forward?

Security:   FB
Position:   Hold

After the much talked about dismal initial public offering (IPO), shares of Facebook (FB) are finally showing some spark. Those who jumped on board this rally would be considering themselves fortunate. For them, it's a matter of deciding when and where to take profits.

Figure 1. Daily chart of Facebook (FB) showing that the stock price appears to be approaching overbought levels.
Graphic provided by: StockCharts.com.
 
Looking at the chart of FB in Figure 1, it does look as if price is in overbought territory. The slow stochastic is above 80, but has room to move a little higher. The moving average convergence divergence (MACD) shows that the trend could continue higher or it could turn around. And price is still hugging the upper Bollinger Band. There is a chance that price could pullback some time soon. If a pullback was evident, those holding long positions could take partial profits and those who missed the ride could take advantage of this pullback and enter long positions.

But given that anything can happen in the markets, especially as we go into this long weekend, be mindful of a pullback turning into a reversal and manage your open positions accordingly.



Jayanthi Gopalakrishnan


Title: Editor
Company: Technical Analysis of Stocks & Commodities
Address: 4757 California Ave SW
Seattle, WA 98116
Website: Traders.com
E-mail address: Jayanthi@traders.com

Traders' Resource Links
Charting the Stock Market: The Wyckoff Method -- Books
Working-Money.com -- Online Trading Services
Traders.com Advantage -- Online Trading Services
Technical Analysis of Stocks & Commodities -- Publications and Newsletters
Working Money, at Working-Money.com -- Publications and Newsletters
Traders.com Advantage -- Publications and Newsletters
Professional Traders Starter Kit -- Software

Click here for more information about our publications!


Comments or Questions? Article Usefulness
5 (most useful)
4
3
2
1 (least useful)

PRINT THIS ARTICLE





S&C Subscription/Renewal




Request Information From Our Sponsors 

DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2019 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.