Updated with comments from Jim Cramer.
NEW YORK ( TheStreet) -- Facebook (FB) - Get Report is taking out heavy resistance near the $83 area Monday after analysts at Piper Jaffray upped their price target to $120. The stock's chart is looking very bullish, and it could be headed for all-time highs.
"We are all about the numbers, Facebook, and we think it can easily do $3.50 in 2017 with just current revenue streams, which is why it is such a large position for ActionALertsPlus.com," said TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio. "Right now Facebook is starting to power traffic in every industry. It is huge. And getting bigger by the week."
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Facebook opened the session with a powerful upside gap that lifted it past the early June highs. The stock had been battling this supply zone since its ugly downside reversal back on April 23. With early multi-week highs of June now convincingly cleared, FB is set up well for a run back up to all-time highs.
Facebook's 2% gain today extends its rally off last week's low to over 5.25%. The stock has been steadily improving since basing near its 200-day moving average in early May, but the action over the last few sessions has been the most constructive. FB appeared to headed for a much deeper pullback after being rejected near the $83 area the prior week. Shares stabilized last Monday before turning higher, and with today's breakout-type move, it is working on a fifth straight higher low.
Facebook current bull move has left behind layers of solid support. A key support band now in play includes the initial June high of $83 and runs down to $82, the 2014 high. A fade back down to this area prior the stock hitting new all time highs would offer a low-risk buying opportunity.
The stock is far from overbought according to its moving average convergence/divergence indicator, putting it in a very bullish position.
At the time of publication, Morrow was long FB.