Should You Like Facebook Inc (FB) Stock Right Now?
FB stock has shown some surprising strength, but shares aren’t out of the woods yet
By Chris Tyler , InvestorPlace Contributor  |   Jan 12, 2017, 8:37 am EST
Source: Via Stock Snap
Today, we’ll look at Facebook both on and off the charts, and present a trading strategy to match our point of view.
Since Donald Trump’s presidential victory, there have been worries about how his plans to “Make America Great Again” will play out for Facebook and other tech giants in Silicon Valley. Simply put: It’s difficult to know what’s coming next.
The fact is the president-elect has shown a knack for changing his mind like no other. That said, at least month’s tech summit, Trump did make an abrupt and positive change in attitude toward Facebook and its compadres.
Much to our surprise — and probably CEO Mark Zuckerberg’s — Trump went so far as to say the administration was ready to do anything it could for the tech industry, saying  “this is truly an amazing group of people.”
FB Stock Chart
Click to Enlarge  The last time I wrote about FB back at the tail end of November, I wasn’t particularly keen on shares. A longstanding uptrend was intact, but our concern was that as a growth stock, Facebook was prone to becoming its own worst enemy.
The fact is technical corrections in even the most liked stocks are all too common and typically blindside bulls with little warning. Facebook seemed to fit the bill. FB stock already was showing some loose testing of its 200-day simple moving average. Given Trump’s less gentle message toward tech stocks at the time, the question of when we’d see a correction appeared to be on the doorstep.
Lo and behold, a correction did emerge, but its technical conclusion definitely surprised this strategist. Facebook stock held the existing 15% correction, and half of the 30% decline accepted as par for the course among growth traders. The corrective activity in FB went on to establish a symmetrical triangle centered around the 200-day moving average before scoring a surprising breakout to the upside.
Currently, FB shares are consolidating just below resistance defined by a bearish earnings gap from Nov. 3. The 62% retracement level is another barrier that lines up with the FB gap.
So, where will Facebook stock head next?