Facebook Inc: This Trade Setup Works
Facebook Inc (NASDAQ:FB) is bouncing significantly today. The stock is soaring, trading at $49.39, +2.62 (5.60%). This is coming after a massive drop that saw the stock fall from all time highs of $51.60 to $45.26. This snap back rally is coming after investors who missed the Facebook run-up, are now buying in a frenzy. This is what is known as a snap-back rally. It happens on the biggest runners on the first major pull back.
While average investors are flooding into the stock, smart money is eyeing it as a classic shorting opportunity. The key is to look for the retrace and pull the trigger on the short. Anytime a stock dumps out on major volume from an all time high you will get this type of snap-back. The key is to know the level to short. On Facebook, the price a break of $50.00. If this level gets breached tomorrow, a high reward short is available.