Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.
Facebook Inc FB shares are trading sharply higher by $2.60 (3.4 percent) at $79.31 in Thursday's session. Major news related to the issue were comments by Cowen that Instagram could be valued by as much as $33 billion.
Facebook purchased Instagram in 2012 for about $1 billion.
Another explanation for the explosive rally could be explained by technical analysis. Despite a solid Q4 beat of $0.06 ($0.54 vs. $0.48) on January 28, the issue has not done much, for the most part trading in a $74.00 to $77.00 trading range since the favorable earnings report.
However, in Thursday's session it had not problem clearing that major hurdle at the upper-end of the range. Once breaching that level, it never looked back, steadily climbing the entire day until finding some intraday resistance at $79.75. That level coincides with its December 31 high ($79.80) and the psychological resistance level of $80.00.
Since making that high, it has declined to $79.27 at the time of this article being written.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
