Facebook looks well done here.

We got some pretty good calls on Facebook and hope that will continue. This is a SELL when the trend line is reached (about $66 maybe). We would not wait for that, or a possible “throw-over”, and would play it safe and sell right away.  This is a semi-log chart; they work better when a large distance is covered in a short time. From $17 this is almost a four-bagger in little more than a year. The chart is a very , extremely, clear and well articulated wedge that is working itself into a corner. In the unlikely event that this is an incorrect interpretation one would still expect a drop in a wave 4 to about $45 in the best alternative scenario. A sell. See also previous blogs!

This is as good as it gets. Gap is closed, c is equal to or a little larger than a, the pattern (at this point in time!) looks like a completed a-b-c counter trend retracement and it is the first day of a new month. RSI and MACD are screaming sell as well.

Then – June 5th 2013 – and now charts;

So the stock stopped dropping pretty well at the $22 level and has now shot up. The best guess is that , as a minimum, we are doing an a-b-c counter-trend correction. The burst up is most of wave 3 so a 4 and 5 should still be forthcoming. $37/38 would close a small gap left behind on the way down, and that might be the target for the c-wave to end this pattern. At a P/E of 141.7X we would prefer to exit sooner rather than later, say at $35. The RSI is already through the roof.