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Today, we’re opening a new bullish trade on Facebook (NASDAQ:FB). We have been watching FB since earnings earlier this month for signs of a breakout.
The stock jumped from the $180 level to a high of $182.90 on Nov. 1 following its earnings release, but it then went through a two-week consolidation period that took shares back down to $176.40. Now, after several big up-days, those prior highs are being challenged again.
This recommendation may be a little bit early, but online shopping numbers look more than good enough to justify our entry.
From a technical perspective, FB is about to complete a short-term “cup-and-handle” pattern, with a prospective move near $190 in the short term.
‘Buy to open’ the FB January (2018) 190 Call (FB180119C00190000) for a maximum price of $2.45.
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