Another stock that's starting to move within range of triggering a near-term breakout trade is social networking Web site
(FB). This stock hasn't done much so far in 2013, with shares up just 4.2%.
If you take a look at the chart for Facebook, you'll notice that this stock has been trending higher after it recently tagged its 200-day moving average of $25.38 a share with expanding upside volume. This move is quickly pushing shares of FB within range of its 50-day moving average and within range of triggering a near-term breakout trade.
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Market players should now look for long-biased trades in FB if it manages to clear its 50-day moving average at $27.80 a share and then once it breaks out above some more overhead resistance levels at $28.67 to $29.08 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 54.79 million shares. If that breakout triggers soon, then FB will set up to re-test or possibly take its next major overhead resistance levels at $32.51 to $33.45 a share.
Traders can look to buy FB off any weakness to anticipate that breakout and simply use a stop that sits right below today's low of $26.61 a share. One could also buy FB off strength once it takes out those breakout levels with volume and then simply use a stop right below its 50-day at $27.80 a share. I would add to either position once FB clears $28.67 to $29.08 a share with heavy upside volume.
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