Facebook Things are a little bit more one-sided in shares of Facebook (FB - Get Report). I'll be the first to admit that I haven't been a fan of this stock. But look at this chart, and you wouldn't be either.
Whenever you're thinking about trading a recent IPO, there are a few things to consider. One of them is waiting for the stock to establish a trading history before buying or selling. Now that Facebook's trading history has become more established, a pretty clear pattern is emerging in this stock: a downtrending channel.
Facebook has hit its head on a trendline resistance level like clockwork since the stock's first trading day. Lately, there's been a lot of speculation that FB may have found a bottom around $17.50, but the setup in shares makes another test of that level completely possible.I wouldn't be looking to buy the dips on this name -- I'd be looking to sell (or short) the peaks. If you decide to do the same, just be sure to keep a tight protective stop.
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