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.
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.