NEW YORK (Real Money) -- Facebook (FB) - Get Report is one of those companies that's not likely to take much of a hit from the situation in Greece, or even the market correction in China. Sure, a big market selloff will take Facebook down with it, but it would only amount to a buying opportunity. Personally, I don't have much of a Facebook presence. But I also don't buy my beauty products at Ulta Salon, Cosmetics and Fragrance (ULTA) - Get Report, yet that stock is at new highs and looks like it's going higher.
But then, this isn't about me, is it?
Facebook is the No. 1 social media stock, and it continues to find ways to make money. Its "News Feed" is continually being changed and updated (in a bit of a scary way, if you ask me, but nobody's asking). So I view Facebook as an ongoing growth story.
According to research platform Marketsmith, the company's growth rate is 59%, which is pretty solid. I think FB goes much higher, and I'm going to show you why.
First, this daily chart shows FB coming out of a volatility squeeze on high volume. The stock pulled back last week with the rest of the market, but found support right about where the stock peaked in March -- prior resistance, once broken, can act as support on any subsequent pullback. That's what's happening now.
This weekly chart shows a long-term picture, with FB breaking above the upper Bollinger band on good volume, and remaining there for the past couple of weeks. I like this stock on any kind of pullback to the low-$80s.
I'm already long, but would like to add to my position on any weakness.
This article was originally published at 2:31 p.m., July 6, 2015 on Real Money.
At the time of publication, Fitzpatrick was long FB, though positions may change at any time.
Dan Fitzpatrick is the publisher of
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