PPR - Watching Facebook (FB) Early in the Day
Facebook (FB) is trading in strong contrarian fashion right off the open with the indexes down sharply after another weak jobs number. The 10-day moving average is at 31.82, and we are keeping an eye on FB here for a possible pocket pivot if it comes up thru the 10-day line on volume that exceeds 28,599,500 shares, the highest down-volume in the pattern over the prior 10 days. For those of you who have the technology, we would advise setting a volume alert for FB today at 28,599,500 so that when and if volume exceeds that level, AND the stock is able to clear the 10-day line, a bona fide pocket pivot buy point within the handle of a possible cup-with-handle base would occur.
Of course, we are a long way from the close, so a lot could happen between now and then, but this is something we think should be watched for in FB should it occur.
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