Wait for Facebook to Pull Back

By

Carolyn Boroden

 | Aug 22, 2014 | 9:00 AM EDT
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I like to use either a weekly or a daily chart to identify my main trade setups, as the setups from those time frames will have some pretty healthy targets for swing trades.  As far as entering these setups however, I like to use a lower timeframe chart where we can really refine entries in the direction of the higher time frame setup. For example, in Facebook (FB), we have a much bigger picture target on the daily chart off the April lows that comes in at the $77.47 area.

We were able to project this target once we saw price hold above these lows by simply running the 1.272 extension of the March 2014 high to the April 2014 low. So way back in April, we knew to watch for that potential target off the $54.00 area. Now we are realistically close to this first major target in this stock. At current levels, we are certainly not going to be a buyer at the $74 area and risk all the way below $54. We are going to refine an entry via the 39-minute chart I will show you next. ...271 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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