Last week we showed the possible longer-term and larger bearish formation Facebook (NASDAQ:FB) appears to be carving out (called an ending diagonal triangle), and anticipated a price target of $127-$130. See here.
So far so good, as FB reached $128.33 on earnings and has since been declining slowly. This leaves us with the following price chart.
As you can see, price hit the upper blue trendline to the T, adding credit to the importance of this trendlne resistance. Price can certainly still march higher in a fashion similar to the February-May advance, but the EDT pattern remains valid, and unless one is invested in FB from much lower levels this is a pattern we can't recomment buying into at this late stage of the multi-year rally.
A break and close over the upper blue trendline on a weekly basis will bring our longer-term bias view of FB into question and will require us to change our POV. Until then, it's an EDT till it isn't.