Facebook – Next Area of Support Is EBV+5 or $18.22
May 31, 2012
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I was speculating with a blog post (here) and Twitter, that Facebook would bounce off or hold at least for a while EBV+6 or $28.93. As you can see from the intraday chart from Yahoo there was some support at this level, however this support level did not hold.
So what happens now?
Next support level is EBV+5 or $18.22. I stated previously in my last blog on Facebook, I thought the odds were 50/50 that EBV+5 would be achieved. After breaking EBV+6, those odds have increased significantly.
Facebook Model Price Chart
Facebook with weekly price bars, EBV Lines (colored lines) and model price (dashed line)
For those interested, a daily updated chart of FB subsequent to this post will be maintained on Facebook, here.
For those speculating with FB shares, this level $18.22 has to be a consideration when mapping out your trading strategy. The good news about EBV+5 as support, it will be significant and should hold better than EBV+6. This is based on my 15 years of working with EBV lines.
Yes, this also means more pain ahead for Facebook shareholders!