After FB moved back above the IPO price of 38, it has stalled and attempted to consolidate around the IPO price level. During the last couple trading sessions, it has broken below the IPO level and headed back down to 36. Looking at the weekly price chart, FB is in the process of completing an evening star candlestick pattern. This pattern typically is bearish when it is formed near the top of an uptrend. One can also see the similar price pattern formed by AAPL in September of 2012 prior to an extended retracement. After FB complete this pattern and price breaks below 36, then there could be some long opportunities when it has found support near the 34 level. Until then, one should exercise patience and wait for the next long trigger from FB.
FB Weekly:
FB Daily:
AAPL has held up fairly well in a market that was down over 200 pts on the Dow. If it can maintain this strength, there is a good possibility that it could break through the 505 level and move toward the 540-550 price target.
AAPL Weekly:
AAPL Daily:
Disclosure: Long on AAPL
