FB Facebook Daily Chart Channels Inverted H&S Pattern

Here is the FB chart to compliment the ZNGA discussion.  Note the clear sideways channel now in play thru 18.8-23.4.  Price tapped the lower rail yesterday and recovered strongly.  Watch the confluence of the 20 and 50-day MA's to see if price moves above, then if the 20 moves above the 50 MA.  Price should now move to the top rail of the channel at 23.4-ish.  The indicators display a sideways vibe which reinforces the idea of a move thru the dark blue channel.  The light blue lines show an inverted H&S with a neckline at 24-ish. So head at 18, neck at 24 would target 30-ish. The neon green lines show the positive divergence that launches price.

FB's lock-up expires tomorrow so folks that hold the stock, previously prevented from selling, are now allowed to sell.  The shorts may have gotten cold feet yesterday since some of the bounce had to be short covering.  FB placed a nice base over the last three months.  If it holds the bottom rail of the channel at 18.8, FB should be fine moving forward. The pink upward-sloping channel also makes Facebook bulls happy. Looks like Zuck should recover and he can don his hoodie proudly moving forward. The projection is a price move to the top of the channels at 22-24. Keystone is not in FB now but is in ZNGA on the long side. Tomorrow will be a big day for FB. 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.