FB broke former key resistance, and now am going LONG!!!
Ladies, frankly I do NOT believe current valuation makes fundamental sense....however, that said, I am a SMART technician and when I saw FB take out a former seemingly insurmountable RESISTANCE point, I recognized it has returned to a BULL market tech pattern.
SMARTER pros NEVER marry any trade position but spin on a dime when the TECHNICALS change significantly.....and am now betting a nice piece of the farm on a LONG move toward approx 45 by early April.
You can NOT fight the chart patterns ladies and FB is certainly no longer in any kind of bear, period.
Valuation will catch up eventually but when are the momentum guys through with this? FB was under $26 after Christmas and now almost $31. Fast Money option guy said fade the rally just now. The question is will they sell the news tomorrow or before the announcement? Schwab has this at a 270 P/E and a foward P/E of 56. That's nosebleed territory. I cannot imagine whether they monitize that they can grow that fast in 1-2 quarters. My money is on the short side soon. If they announce a new phone look out below.
You have another key resistance at $33.00. This is where FB first failed. I am not saying that stocks go from resistance and fail or succeed. That is not really how it works. Most of what is going to happen now is fundamentally driven and quite frankly will be based on how they report. If you want to figure out scenarios, then you need to wrap that in with the technical analysis.
When a stock passes a barrier, it does not give a stock wings.