Shares of Facebook Inc (NASDAQ:FB) are surging higher today as buyers swoop in and buy quality tech stocks. As it blasts higher, investors are wondering two things. First, for those who bought the stock, how high is it going? Second, for those that are looking to short the stock and profit, where is the high reward, low risk level.
The stock likely has more upside into next week. The strong move over the last few days will not end quietly. The first resistance will be at a technical chart level known as gap window. This is at a price point of $124.00. While it may pause there, it likely goes higher to a final target of $127.15. This final target is a mega resistance level which happens to be the price of the stock just before Facebook Inc announced their earnings report in October 2016. The stock opened the next day sharply lower. This is where I will be looking to short the stock because it is such huge resistance. In addition, the problems at Facebook Inc are not going away. Big companies are moving away from targeted ads because they just do not work anymore. This caused the collapse last earnings and will likely be a hardship this earnings period. For investors and traders looking to short the stock, do so if Facebook reaches $127.15. The pull back will be to a target of $116.00.