There was noteworthy price action in this IBD50 watch list candidate, as Facebook (FB) broke out past a 175.49 pivot high on Tuesday. Volume was above average and RSI suggests the stock has room to run on the upside. In addition, the Najarian Brothers highlighted the NOV 180C volume. Facebook has tacked on +45 points on this 2017 advance.
Facebook’s measured move (MM) from the recent consolidation projects 185.00 (+/-) in the near term. MACD is above its signal line, confirming bulls are in control for now.
Pivots for today are just above pre-market price action at R1 (176.71). Note Bollinger Bands are just beginning to expand on the 15-minute chart below. In addition, we have a volume pivot occurring at the close.
If all goes well today, Facebook should advance. Pre-market the stock is trading between (+0.33 and +0.55).
Chinese stocks sold off prior to President Xi speech – credit Investors.com
Chinese President Xi Jinping laid out a roadmap for the world’s second-largest economy in what he termed would be a “new era” with China more open to the rest of the world.
“Through a long period of hard work, socialism with Chinese characteristics has entered a new era, this is a new historical direction in our country’s development,” Xi said.
On the economic front, the Chinese leader promised to relax market access for foreign investment, expand access to its services sector and deepen market-oriented reform of its exchange rate and financial system, while at the same time strengthening state firms.
Look for BABA, BZUN and other Chinese stocks to move higher today. If they do not, we would cash out.
Happy Wednesday,
Vinny