Facebook (FB) - Get Report may be on the cutting edge of a new bull leg. The stock is up just over 1.4% at midday as it attempts to break through a key overhead trend line. Facebook is still rangebound, but a close above the $108 area would push shares to new December highs. Facebook bulls should keep a close eye on this level with the expectation that a move into new all-time-high territory could quickly follow.

Back on Friday, Dec. 11, Facebook appeared headed for a retest of key support. The stock had been in consolidation mode since its early November peak and was working on a lower monthly high. A drift down to support near the $100 area appeared to be a lock. The very next Monday, Dec. 14, investors stepped in aggressively, sending the stock to an upside reversal. Facebook drifted just below $101.50, just deep enough to spark a dip-buying wave. The stock continued higher over the remainder of the week, but since the Dec. 17 peak, the stock has been stuck in a narrow range. The sideways action of late appears to be giving way as the stock makes another run at its multi-week December highs.

Investors should take on a more positive view of Facebook in the near term. Today's rally, although on very light trade, is a good indication that an upside breakout is brewing. Facebook bulls should consider the $107-to-$106 area as key support. The lower band of this key zone includes last week's high. On the downside, a close back below last week's low of $103.60 would indicate more back-and-fill trade is ahead before new highs can be reached.

If Facebook can muscle past the $108 resistance zone, it will have plenty of room to run. With the daily moving average convergence/divergence indicator back to neutral, the stock could travel quite a ways before exhaustion sets in. In the very near term, the $108 area holds the key.

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Disclosure: This article is commentary by an independent contributor. At the time of publication, the author was long FB.