Facebook is trading in a bullish trend and several arguments are in favor of the continuation of this trend.

The company’s fundamentals are still strong. Sales are up +42.4% for this year. Analysts from Thomson Reuters consensus have revised largely upward their EPS estimates.

Technically, the security is in an uptrend on all time scales and supported by its daily moving averages. The bullish trend will not be stopped until prices are above the USD 110.5 level. This trend should allow the stock to reach its USD 117.4 long term resistance, which will be the first target price.

For reasons above exposed, investors could benefit from the upward trend on Facebook by opening a long trade. A first target could be set at the USD 117.4. The return under the 20-day moving average would invalidate the recovery scenario and trigger the stop-loss order.