Facebook no doubt has been in an uptrend all year when you zoom out and look at the weekly chart. At times it offers a buying opportunity disguised as a pullback. If you can catch the stock near support you stand to profit in the short term and for those long term traders who don’t like to jump in and out of stocks the weekly chart shows that long term this stock has been paying off. How long can the stock run and will it bounce off of support like it has in the past? No one knows for sure but you can use these support and resistance levels as well as pattern recognition to increase your chances of being on the right side of the trade and save yourself a heart attack by knowing definitively where to set a stop loss in the event the trade turns against you.
Do you use a stop loss in your trading? If so how do you set them? Also what do you find is the most difficult part about setting a stop loss? I’d love to hear from you, leave a comment below.