FB Breaking Out

Shares of FB have broken out. Last week, they took out the previous high of $195.32 and then successfully retested the level the following day. Today, bulls continue to validate the breakout, with shares flirting with the $200 level.

I expect continued strength in the name, as valuations are reasonable and fundamentals remain strong. Given the lagging performance relative to other tech names, there may also be a catch-up rally in the cards.

Upside targets, based on Fibonacci extensions, are $208, $214, and $224.

I'm long shares (have been since the I.P.O.), and I also bought July 20 $205 calls near last Friday's close. Seems like a picture perfect breakout!