• 699 days Will The ECB Continue To Hike Rates?
  • 699 days Forbes: Aramco Remains Largest Company In The Middle East
  • 701 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,101 days Could Crypto Overtake Traditional Investment?
  • 1,106 days Americans Still Quitting Jobs At Record Pace
  • 1,108 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,111 days Is The Dollar Too Strong?
  • 1,111 days Big Tech Disappoints Investors on Earnings Calls
  • 1,112 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,114 days China Is Quietly Trying To Distance Itself From Russia
  • 1,114 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,118 days Crypto Investors Won Big In 2021
  • 1,118 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,119 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,121 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,122 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,125 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,126 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,126 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,128 days Are NFTs About To Take Over Gaming?
Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Billionaires Are Pushing Art To New Limits

Billionaires Are Pushing Art To New Limits

Welcome to Art Basel: The…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  1. Home
  2. Markets
  3. Other

Facebook Trade Set-Up

Facebook Crushed Earnings

Overall Facebook is a strong company with great numbers. Including 59% YoY revenue growth, 16 quarters beating earnings estimates, and 2 billion searches per day.

Below is a simple chart of Facebook, 2 days after they crushed earnings. Shown is a 6 month, daily chart using Japanese candlesticks, one of my favorite. Japanese candlesticks can tell a lot when used with other indicators.

Observe the static cycle notated with cycle highs. If Facebook responds to this cycle, it should run into resistance right now using time. I have drawn 4 trendlines on the chart as well, 2 acting as support and 2 acting as resistance. The current one is acting as support.

At the bottom of the chart is a common oscillator currently suggesting momentum is slowing with a bearish divergence.

To sum up, we have a common cycle, trendline support with resistance above, and divergence showing up. This is the trade set-up. 2 ways you can play this, short now with a stop above the current high, or wait for a break of the trendline. Everyone has their own style but make sure you have an exit strategy in case the stock moves in the wrong direction.

Facebook Daily 6-Month Chart
Larger Image

 


DoublePlayOptions does not trade individual stocks, instead focuses on trading the main indexes and etfs that track them. Send an email to admin@doubleplayoptions.com for your next free options play or click here Email If you do not double on the options play, let me know and I will give you a free month of service.

 

Back to homepage

Leave a comment

Leave a comment