We exited the trade just over 2 months ago after reporting dismal earnings. Was that a mistake?
FB has traded nearly 20% lower from where we originally exited and has been dealing below our two main MAs.
Post-market FB is at 50MA but now needs to start to deal above this level.
Unless the market is very bullish about these numbers, the gap up would but almost account for the majority of enthusiasm from yesterdays earnings, bar the retail traders. And a bullish market can provide more reason for this stock price to move up.
We never really wanted to exit this stock but earnings forced us to make that move.
Now we are again watching the stock but these earnings alone are to enough to entice us. However, if we start to see evidence of genuine momentum with low risk offering, we may look to re-enter this stock.
For now, it remains on our Stalk Stocks watchlist.
Let’s go trade!