TOLD YOU SO: Here’s How Facebook Lost the Battle at $28
During market hours, I pointed out that $28 marked Facebook’s (NASDAQ:FB) 10-day simple moving average.
Now take a look at how the rest of the day played out:
If you were looking for a ‘low risk’-‘high reward’ area to setup a trade, the battle for $28 provided two easy wins today. Moreover, once the $28 area of resistance failed the second time, traders pounced on the stock and crushed it into the bell. That’s a textbook sell off after an important level of resistance cannot be broken.
Over the coming days, Facebook should continue to trade according to technicals because fundamentals are highly contested. Do your research for popular technical indicators to see if you can setup lower risk, higher reward trades as the stock continues to challenge highly watched battle grounds.
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