Facebook (FB) has risen 10% in the past 30 days, from $300 to $335. It looks to be reversing down and a break below $330 will generate a short-term Sell targeting at least $310 if not lower. A minimum 38.2% Fibonacci retracement of the YTD run from $250 brings FB back under $300. The July 16th $320P is trading at $5.40-5.50, setting up a 100% potential reward at or below $310. In addition, a decline in the next week below $315 will generate an Intermediate Term Sell Signal, bringing into focus the $250-280 target zone. The ducks are lining up. First, FB needs to drop below $330 and stay there. Risk v Reward on this trade is stellar as a break above yesterday's high of $338.17, just $5 higher, calls off trade. Short-Term Sell Signal Pending: FB on an hourly close below $330.00 (currently trading at $332.90) Option: July 16th $320P (5.40-5.50) STOP: A rise above $338.17
