With $FB soaring to record highs a month ago, I was one of the few calling for the stock to pull back. I stuck my neck out, bought some puts, and watched as a horde of irrational traders kicked me to the curb. They didn't think $FB could trade lower. It did.
Analysts came out, seemingly once a session, with another price target raise. $60, $70, $80, $85 - the targets kept ticking higher, and $FB followed right along. The stock seemed impervious to downside.
A week later I remained steadfast in my opinion that $FB was headed for a massive pull back, one that would wipe the smile from those care free bulls who had been buying the stock without regard.
$FAST $FORWARD a month and $FB Facebook has indeed dropped from the lofty $70 figure. It has dropped below the $68 figure, the $65 figure, and the $60 figure.
Today it dropped under $56. And guess what? I like it here for a trade over $60.
Today it bounced perfectly off support. I am looking for a continuation this week and a move back over $60. At that point I'd expect the remaining bulls to pile into this story stock for one last push. When we top again, I'll let you know, for now its time to rally. You can share that with your friends.
