The move in Facebook has been extremely impressive, not so much because of the actual breakout but due to the rather the manner in which the stock has consolidated ever since. A tight, sideways technical base on the daily chart generally indicates that strong buyers have little interest in hitting the exits even after a powerful breakout.

Looking for a secondary entry point is often more of an art than a science. But one useful tool is to wait for the 20-day moving average to rise up to price. Krispy Kreme Doughnuts is a good example of this tool. As a result, Facebook might need just a bit more time to set up for another leg higher.

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