Facebook Inc (NASDAQ:FB) continues to fall sharply, trading at $29.19, -2.72 (-8.52%). As most investors panic and run for the exit, smart traders and investors are eyeing it for a buy. The key here is to recognize the insane hype leading into the IPO and now the nutty hype on the bearish side. When this indicator reaches a maximum, a reversal takes place. Right now, Facebook is nearing its maximum level of negative hype. The buy level I am seeing is at $28.00 At that level, downside risk is to $25.00 while upside reward takes you back to $35.00. In addition, buyers would be able to enter Facebook for a $10 discount to what investors paid prior to its launch. The average investor is dumping in a panic, that means I am beginning to lick my lips, standing ready to accumulate.
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Chief Market Strategist