Facebook (FB) has broken free from a downtrend on the daily and is headed into a new direction.

GAP REVIEW

On July 25, 2013, FB gapped up on earnings clearing over $33.40 supply with over 365 million shares traded.  Whenever you see a gap up like FB with historical volume, take note that the stock is headed into a new direction.  It has created a whole new momentum move into the direction of the gap.

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KEY LEVEL

FB key level overhead is its IPO high of $45.00.  It’s very likely that FB wants to go and test that old IPO high.

THE TRADE

Buy any pullbacks to $35.00.  I presently have my Swing Newsletter subscribers long FB at $35.00 looking for IPO highs of $45.00 as targets.

LESSON

Pay attention to big moves on volume.  They are either starting a new move like FB or they are ending a move in the continuation of the present trend.

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Disclosure:  My Swing Newsletter Subscribers are Long from $35.00 7/29/2013.