Facebook Added to the Tradespoon Bulls Conviction List

Welcome to Karpel’s Corner. This is where I throw out my thoughts on the markets and share some of my favorite strategies. I keep it market-focused, and never miss an opportunity to teach trading strategies and commentate on the latest trends affecting the financial markets. Hope you enjoy today’s post!

We just added Facebook ($FB) to the Bullish conviction list with a Tradespoon score of 10/10. This is the highest short and long-term rating that we can give a stock. The journey to get on the list has been a volatile one to say the least.

The stock hit a new high in late October, and then gapped down after earnings. Interestingly, mobile search has been the biggest driver in the stock’s strength. The stock has broken down from the above mentioned highs, but the consolidation has been tight for the past few weeks.

A break above $76.80 would be positive and a price catalyst for new highs. Even if we see a break of $72, while short-term negative, could be viewed as an opportunity to buy. This is for two reasons. First, the broader market S&P and NASDAQ remain in an uptrend. This is positive for Facebook. Second, there is a lot of support in the $70 to $72 area. August through October lows combine to mark support here.

See you next time at the Corner!