Three Bullish signs -
1. Price holding on to the gap support and rising up.
2. This is a 38.2% Fibonacci retracement level, price held on to it - sign of strength.
3. Support at the 20 day EMA.
1. $FB jumped over it's 10 day and 50 day SMA today on a very high volume.
2. The volume was higher than any down day volume in last 10 days.
3. It also cleared an important resistance level marked in red.
I would go long if it stays above this resistance level tomorrow and put a stop just below the green resistance line.
Buy point at 144. Another interesting thing to look out for is the bounce off of the 50 day SMA. In the past, whenever the stock has bounced off the 50 day SMA, it had turned into a rally.
This is the third attempt to break through $34 price, this time in conjunction with an increased volume. The technical indicators point towards oversold however so I am a little bit neutral. I will be bullish once there is a clear break of the $34 resistance line.
Just a note before you read my analysis: I am fairly new to technical analysis and in the learning phase, would appreciate if you could point out my mistakes!
In the chart above, I took a look at the bigger picture to start with which was a weekly view, I determined the uptrend that started in Feb 2014, Then I turned to the daily chart and used Fibonacci...
