Yes, Facebook is what I’m referring to. While I’m not the only one expecting a FB sell-off due to the coming available FB shares to be released into the public; but today price action figuratively slams the fist on the table. Bang!
Gap down warning!
Look at the daily chart below: There are 3 gap downs (not counting today) in the history of FB price actions (see the highlighted circles) and they all ended with the trend heading lower afterward. Why would today be any different? On top of that, there is a baseline support around $19.82 (08/02/2012 low) that is looking to be penetrated soon.
Below is the hourly FB chart for a better effect on the gap down look.
Well, what do you think? Of course, I bought some FB put optons for this bet. And yes, if the baseline support is penetrated, I’ll buy more puts.
Remember, trade with discipline and follow the price actions.
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