The 50% Pullback

I bring to the table points of view for both selling short and going long, the buy the dip mentality has maybe been shaped from the hundreds if not thousands of times stocks go up from competition over asset prices.

I am breaking down some points of interest with Facebook shares FB from the low of $72 to the all time high of $195.32

I believe the trend is down and that shares are going from expensive to cheap. 

How low can it go?

Why should there be a shorting opportunity, and is there deep value somewhere?

• Headline news pressure, Zuckerburg in the news brings to light some of the risks the company faces
• The fibonacci tool, marking the $136.66 the fair middle ground
• The magnitude of this move was 123 points and thats how far it ran
• The stock went up 171.28% and that was just since October of 2016
• Moving averages:  The 50 period simple moving average, and the slower sloping 225 period
• Former resistance becomes support 

From countless frames of experience I have seen the 50% retracement get touched whether its a bullish scenario and prices are ramping up off low prices.  I have also seen several tops eventually roll over, and rest at a 50% fibonacci retracement which is perceived as a deep value proposition.  

Price is below both moving averages:  the 50 and the 225, there is a gap above and I see that as a risk for shorts, that is to say that the gap could be filled at 175-178, but who knows really?

The other aspect of the darker blue 50-simple moving average is that it is pointing down so aggressively I take that as the sharpest indication of trend direction.  

So hitting a 50% pullback of this entire MONSTER move would account for 61.16 points of movement out of something which went up 123 points, its attainable even though it would look like a big stretch now.

At about 10/24/2016 shares of FB really hit a roadblock and that resist point should act as support if the force of the downtrend is powerful enough to bring us to $133.66