Facebook, Inc. operates as a social networking company worldwide. It builds various tools that enable users to connect, share, discover, and communicate with each other on mobile devices and computers. The company's Facebook Platform is a set of development tools and application programming interfaces that enables developers to integrate with Facebook for creating social apps and Websites. As of December 31, 2012, it had 1.06 billion monthly active users and 618 million daily active users. The company has a strategic partnership with Trend Micro Inc. for educating and protecting users' digital lives against malicious sites and malware. Facebook, Inc. was incorporated in 2004 and is headquartered in Menlo Park, California.
FB could be forming a head and shoulders (H&S) pattern. Please
take a look at the 1-year chart of FB (Facebook, Inc.) below with my
FB has performed quite well over the last 5 months while creating a
key level at $45 (blue). That $45 level, which has been recent support,
is also the possible “neckline” for FB's potentially still forming
H&S pattern. Above the neckline you will notice the H&S pattern
Remember, patterns such as an H&S need to confirm to have the
meaning that they imply. Confirmation of the H&S would occur if the
stock were to roll over and break below its $45 support. If FB does
break that level, the stock should move lower from there.
The Tale of the Tape: FB could be forming a head
& shoulders pattern. Although a trader could go long at $45
expecting a bounce, the stock's pattern would imply an eventual
breakdown. If that happens, a short trade should be entered on a break
of that $45 level.
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