Chart Pro: Facebook Could See More Gains
Shares of Facebook, Inc. (NASDAQ:FB) closed above the $172 level Tuesday, which is an encouraging bullish indicator according to Miller Tabak's Matt Maley.
Facebook's stock got a lift in reaction to a Deutsche Bank research report that said the company could hit $10 billion in sales in a few years. The boost above the $172 resistance level should be able to "attract the kind of momentum money," which hasn't been seen in more than six months, Maley said during a CNBC "Trading Nation" segment.
Maley said the reason why the $172 level is "so important" is because this represents the top-line of an ascending triangle pattern. A little bit more momentum in the stock could translate to continued momentum over the short- to intermediate-term period.
S&P Global's Erin Gibbs said during the same segment Facebook's acquisitions, especially Instagram, will help generate growth. The company's acquisitions over the years are finally attracting the attention of analysts who recognize the growth potential.
Encouragingly, the sentiment around Facebook is starting to change away from privacy-related scandals and the stock is likely a "safe bet here given that most negative news is already priced in," Gibbs said.
Facebook's stock closed Tuesday at $174.20 per share.
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