The last time I wrote about Facebook (NASDAQ:FB) was September of 2016. In that post, I used the same trend line that we will be looking at today to warn of a Facebook stock correction.
Note that Facebook’s stock price hit the trend line and abruptly fell 15 percent. It then based for a couple months before continuing its bull march higher.
So where is Facebook’s stock at today?
Well, the stock is much higher (and longer in its bull march). Take a look at the upper trend line in the chart below. That trend line has stopped all of the advances in FB. At these levels it is hard to imagine a 15, 30 or even, dare I say it a 60% stock correction. It might be time to start tightening up the stops and preparing for a correction that could be a lot bigger than most investor think. Stay tuned.
Facebook Stock Chart with “weekly” candles
Thanks for reading.
Twitter: @BartsCharts
Author does not have a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
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