Facebook has risen more than 25 per cent this year, and although it has been moderate in the last month, Carter Worth, marketing director of Cornerstone Macro, said to CNBC that it’s a good time to buy a bathroom if you do not want to go left outside the rally.
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Is Facebook stock worth buying? There’s an opportunity!
Worth has the following statement about this;
“I think there’s an opportunity just as a catch-up trade,”
“If you zero in on that, what we know is that the stock makes a new low. It undercuts its October low, but that is not the case on a relative basis, which is to say that even as it was selling off, it was actually outperforming the S&P, and that sets up what has been since, not only an absolute winner but a relative winner, and I think that’s part of the opportunity,” he said.
Highlighting a similar structure
“You’ve got something of a well-defined head-and-shoulders bottom, you have this well-defined top, and of course, you get that massive breakout,” he said.
“What I’m thinking is that you have this initial heavy-volume thrust, and you’re going to get a second one all coming from the point at which it broke out, and we’re going to do it again.”
According to CNBC, Stocks continued to point to a breakdown driven by volume integrated into stock increases at the end of January when Facebook reported earnings.
The values also indicate the importance of seeing the reciprocal of how this action could trade upwards: how hard was the blow in the first place, highlighting a similar structure from the price gap to the downside in July of last year.
It is worth waiting for Facebook shares to increase again
“After gapping down, we had this very well-defined triangle, and what happened? We did it again. We’ve got the reciprocal [of that structure] going on here, and I want to play for a significant bump higher,” he said.
It is worth waiting for Facebook shares to increase another 10 percent from current levels.
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