The last couple weeks we saw a massive decline in Facebook. It is now trading 6$ lower from the recent heights. This is a massive reversal. Now why is Facebook selling? Well facebook pays no dividend and people keep on buying high dividend stocks right now. Will this hold forever?
At some point, these high dividend stocks will stop running! People will pull their money out of these stocks into other low floaters! I am looking to take a small long position into Facebook around $22.73.
I am looking for a bounce back to the 200 daily moving average, and my stop will be a close below $21.00.
Kristof De Block