FB shake out? Break-out imminent?

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Stocks often have a sudden shake out before they begin a major advance.   That may have happened with FB, which bounced back on Tuesday and re-took its green line.   A rise to a new all-time high today on above average volume could be the start of a major advance.   I am monitoring it closely and will enter a buy stop order   today at around 45.65.   A buy stop order is placed at a higher price and triggers a market order the moment the stock trades at that price.   In my IRA, however, I am only allowed   to place a stop limit order because   a stop order   could be triggered at a much higher, unanticipated,   price if the stock gaps up. So I might enter an order to buy FB on stop 45.65, limit 45.80.   The problem with the stop limit order is that if FB   gaps up to 45.81 and does not trade lower, I would miss buying it. (I could just enter a higher limit price to avoid this from happening.) Here is FB’s daily chart through Tuesday’s close. Note that the stock closed back above its green line on above average volume. With talk about a Twitter IPO, the entire social media sector might heat up. (I already have a small position in FB.)

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3 thoughts on “FB shake out? Break-out imminent?”

  1. Dr. Wish, since you’re keeping a CLOSE watch on FB, why don’t you simply buy it AT MARKET when it hits 45.70? or 45.60? Myself, I am in favor of INVN and DDD.
    Do you have charts for these two? Judy also has INVN shares from one year ago, when it was around $9.50 per share.

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