Here’s the chart that I quickly uploaded to StockTwits from my e-signal feed BEFORE $FB announced earnings. (by the way, Howard, AWESOME functionality .. so easy to use and to do. NICE)
now, I know I’m going to get tons of hate mail tonight … look, I get that they had an AMAZING earnings release. but, work w/ me, I understand none of that … honestly, I really don’t understand it. I’ve work my way thru the market as pure play pattern recognition dude. sometimes I’m right, sometimes I’m wrong BUT ALWAYS know where the pattern has failed.
you can see the PATTERN called for $FB to tag 108-110. Guess what? It did! And?
- ab=cd in price and time (this is a sell pattern)
- butterfly sell pattern (this is bearish)
- potential island reversal (this is bearish)
- shooting star daily candle formation (this is bearish)
now for the IF-THEN .. IF we break (daily close below 104 THEN this could be a big top for $FB.
CONCLUSION: sell patterns are complete. IF FB continues higher w/ thrust and momentum then it is extremely BULLISH. But, if we start selling off … then might look to take some profits based on your risk tolerance.
OK, I just ducked at all of the hate objects that were thrown my way … calling it like I SEE it and not believe it ….