Facebook (FB) is holding along its 50-day moving, but the rally back above the line has shown some wedging characteristics. If the general market starts to break down and this past Wednesday's alleged follow-through day fails, the stock is likely to break here. We would look to get short the stock here using the 107 price level as a tight 2% stop.
FB is a recent late-stage failed-base (LSFB) situation, and could retest the lows of two weeks ago near the 200-day line. We currently have a position in the stock.
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