FB Facebook 60-Minute Chart Cup and Handle (C&H)

Faceplant is showing a textbook C&H set-up. The thick red lines show the cup and handle that formed. Talking generically for all C&H patterns, the blue lines in the right margin show the three buy points that typically occur.  Traders can buy the breakout where price moves up thru the base line (for FB this is 33.00 and also 33.50, call it a thick gray area line at 33.0-33.5), then price will typically come back for a back kiss of the break out, this offers a second chance to buy, then once price moves higher and exceeds the intial pop above the pattern, that is a third chance to enter for a ride higher.  For FB, the bottom is 25.5. Using the 33.0 breakout line, that is 7.5 difference so the target is 40.5. For the 33.5 breakout line, that is 8 difference, so the target is 41.5. But, and it is a big but, price has to move up thru 33 and/or 33.5 first, otherwise, FB bulls got nothing.

In fact, to throw the FB bears a bone as well, watch the 200 EMA at 30.65 like a hawk. If this level is lost, shorts can be pressed since FB will be in a heap of trouble. Note how price has already leaked off of the breakout line over the last two days, unable to move above 33 so far.  The indicators favor lots of sideways movement ahead.  The tight 31-33 range is in place for the last three weeks. Keystone has not played Faceplant and does not have any plans to, either short or long. It is a piece of garbage best avoided. The bulls win above 33.00, the bears win below 30.65. Projection is for sideways price movement perhaps forming another handle or two, then a decision coming in a couple weeks. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.