Monday, 24 September 2012

Facebook....falls flat on its face.

Sorry but that was too easy.  Facebook today dropped 9%.

As you can see below, FB was finally starting to pull out of its downward trend at the beginning of Sept, increasing a respectable 28% before retracing its steps today.

With today's drop, it falls below its 50 DMA.  However, since its a big gap down, expect it to not be as meaningful as a longer term drop.  As well, there's considerable price support in the $18-19 range so it should take a while for it to drop below its recent lows.

What was the catalyst for today's drop?  Take a look at Barron's front cover page:

That says it all.

No comments:

Post a Comment