Here is a weekly chart of Facebook. We do know a lot about it before the earning disappointment.
1. The original channel has been in force for years (red lines)
2. Yellow zone marks the channel breakout
3. Orange line is the 100% expansion
4. Magenta line is the 200% expansion and the usual end of a run on first touch
5. Real support back down at the pale green zone
What’s the use of knowing the potential?
To name a few, protect your profit if you were long the stock, anticipation of Nasdaq 100 would have serious resistance to go much higher and, as a minimum, not to chase the stock of Facebook over the past month or two for long term holding.