Trade of the Day: Facebook Inc (NASDAQ:FB)

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Today, we’re opening a new bullish trade on Facebook (FB). In the wake of Fed Chair Yellen’s “hawkish” monetary-policy speech at Jackson Hole, the market is trying to figure out what to do with the new information. Some believe the Fed is going to hike rates in September, while others don’t believe it will happen before December. However, while nobody seems to be able to agree on when the Fed is going to act next, it seems many are moving back into the trades that have proven to be proverbial winners during this topsy-turvy market. FB is one of those proverbial winners.

We anticipate FB is going to break out of the bullish flag continuation pattern that has been building during the month of August and move up to challenge its recent high of $128.33. We are buying the $130 strike because we wouldn’t be surprised to see the stock establish a new 52-week high with its next move to the upside. The company has proven itself capable of boosting revenue when others can’t, and this makes it an attractive investment for most investors.

Buy to open the FB October 130 Calls (FB161021C00130000).

You can learn more about identifying price patterns and using them to project how far you think a stock is going to move in our Advanced Technical Analysis Program.

InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of LearningMarkets.com, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.


Article printed from InvestorPlace Media, https://investorplace.com/2016/08/trade-day-facebook-inc-nasdaq-fb/.

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