To update this blog post about Facebook’s sudden resurgence, you can see on the daily chart below how the stock not only became overbought, but stayed so. After a six-month IPO sell-off and subsequent base, the chart is clearly signaling accumulation (buyers of size layering in aggressively) in its volume pattern to accompany the recent base breakout.
When you see a stock that fights hard to avoid an initial steep price correction, it tends to be wildly bullish for the intermediate-term timeframe as it denotes strong and persistent underlying demand for shares. Here, Facebook is riding along its upper daily chart Bollinger Band in lieu of a correction.
Given the gap-up this morning, I would not buy Facebook right here, right now, but you can be sure I am stalking any consolidation for a swing long entry point.