Since the last earnings report, FB not only has regained the losses since its IPO but has nearly doubled since its last earning report. In the last two weeks, FB started to consolidate its recent gains. Last week, it ended with two consecutive weeks of losses for the first time since May of this year. The price action from last week resulted in a bearish hangman like candle on the weekly chart.
(click on the chart to get an enlarge view)
Although the price bounced off the 78.6% Fib retracement near the mid 45 level, unless it can put in a new all time high without reverting back below the 78.6% Fib retracement level then a pull back to near the IPO opening price of 42.05 is probable. If FB continues to push higher beyond the recent high of 51.60, then it could attempt to reach the 127% Fib extension near 59 (see the daily chart).
AAPL also has moved higher after its last earnings report. The price took out the double bottom pivot and proceeded on to fill the January 2013 gap between 504.77-465.73. It attempted numerous times to close above 507 and got rejected with a gap down when AAPL announced the new Iphone 5C & 5S. On the daily price chart, it shows the price dipped below the 50 & 200 SMA briefly (green & red line respectively) and found support at the 50% Fib retracement (see “AAPL Next Move” for Fib levels). In the last ten trading sessions, it has been consolidating within 480-490 price range. If AAPL unable to move above the 507 level then watch the rising trend line for possible support.
On the weekly chart, it show AAPL could be in the process of completing the formation of a cup & handle price pattern. If it breaks above the 514 baseline, the projected price target from the measured move could be near 635 where the April, 2012 pivot lies.
Disclosure: Long AAPL call spread.
