Facebook Rally Approaching Danger Zone?
Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Facebook Inc (NASDAQ: FB) shares are trading higher $0.55 at $88.43 in Wednesday's session. It has backed off its new all-time high that was earlier in the session at $89.25.
The issue is in the midst of a torrid four day winning streak that has taken the issue from Friday's close ($82.51) to its current level.
Part of Wednesday's rally can be attributed to comments made by RBC Capital analyst Mark Mahaney, who believes the issue is worth $105.
After a weaker open ($87.88 vs. Tuesday's close of $87.88), it dipped to $87.45 before erupting to the upside.
It should be noted that Facebook had a significant correction when it made an all-time high in March 2014 at $72.59, retreating to $54.66 before rebounding. In addition, it had a milder retreat when it peaked at $84.96 in March 23 before falling to $76.79 on the way to another rally.
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