We saw a major breakout in many tech stocks last week and the market is once again on fire to the upside.
As you know one of my favorites is Facebook. Let's try to get an idea of where this move might run its course using 2 different methods.
First lets look at the Fib lines. With this past week's action, we breached the 161% line at $100.47. That opens up a move to the next upper white lines at 105.23 and 109.74. These levels might be the end of the move, or might be just places along the way where prices are deflected back.
The next most important upside level is the next green line overhead at 115.49.
As for the 2nd method, let's try a Fibonacci Extension of the recent high to low move from 99.25 to the recent low at 72. I did some quick research on whether to us the wick high and lows to measure the move, or to use the high and low of the real body of the candle. The answer I got is that it doesn't matter which you use just, be consistent. In other words, if you use the wick high (as I did here) use the wick low and not the real body low.
In either case, we find the 61% of the recent move ends at $115.71 which is all all the far from the upside tree line at $115.49. No one knows where the move will end of course, but those levels are my best guess. Facebook earnings are coming up 11/4/2015.
FYI - you can get my Fib Lines lines indicator for Thinkorswim for free, just send an e-mail to email@example.com.
Have a great week ahead.