So, what is big money? That’s when a stock rises in price alongside fat volumes. It is indicative of institutions betting on the stock.
Smart money managers are always looking for the next hot stock. And facebook has many fundamental properties that are attractive.
This is good for the future of the stock. But how the stock is trading points to more upside. As I’ll show you, the big money has been consistent in the stock over the past year.
You see, fund managers are always looking to bet on the following outliers… best in class. They spend countless hours reviewing companies, reading reports, speaking to analysts… you name it. When they find a company firing at all cylinders, they flee.
That’s why I learned the importance of measuring the demand for Big Money’s stock. To show you what I mean, take a look at all the big money signals FB has made in the past year.
There has also been Big Money activity in recent days. Each green bar signals large trading volumes as the stock rose in price. Red signals show big sell in the stock:
In 2021, the share has steadily increased. Year to date, FB has made 11 of these rare green signals. These came after a major sell-off earlier this year when growth stocks came under pressure. In general, recent green bars can mean that there is more upside potential.
Now let’s take a look at technical action that catches my eye:
The outperformance is huge for leading stocks.
Next, it’s a good idea to look under the hood. That means I want to make sure the fundamental story is strong too. As you can see, Facebook has been growing its revenue and earnings quickly. Look:
Combining great fundamentals with technically superior stocks is a winning recipe in the long run.
In fact, Facebook has been a top stock in my research firm, MAPsignals, dozens of times over the past few years. That means the stock has buying pressure, strong technicals and growing fundamentals. We have a ranking process that shows these types of stocks on a weekly basis.
FB has been a Big Money favorite (live and backtested data) since 2013. And since it last appeared in this report on 8/27/2013, it’s up 832%. The blue bars below are the times when Facebook was a top choice:
I wouldn’t be surprised if Facebook pops up even more in the coming years. Let’s tie this all together.
Facebook continues to fire technically on all cylinders, in addition to growing sales and revenue. I like the long-term story of the stock.
It comes down to
The Facebook rally could go even further. The big money buying the stock is a signal to watch out for. Stocks can be positioned for further upside potential. Given its historic price gains and strong fundamentals, this stock could be worthy of a place in a growth-oriented portfolio.
Disclosure: The author has no position in FB at the time of publication.
More information about the Process MAP signals here.
This one article was originally posted on FX Empire