Facebook (FB) a buy? – You may recall that we are not a great fan of Facebook stock when it was IPO-ed back in May’ 2012. It’s not because of its fundamentals, just because of its technical factors. In fact, we were impressed with its fundamentals from the get go. We also wrote a couple of articles on this stock Facebook (FB) – How to trade an IPO stock ? and Facebook (FB) – Multiple Resistance Price levels since then.

But, sounds like this stock weathered the IPO correction, and ready to be the next leaders. As Apple (AAPL) lost its leadership long back and Google (GOOG) is moving into the elite blue-chip club, there is really a big vacuum in the current market leadership. There are few tech based stocks out there like Groupon (GRPN) and Pandora (P) , but their fundamental sucks like hell.

Though, this stock messed up IPO continues to hinder its performance till to date, it appears to be the market is left out with no other option, but embrace its leadership. In our opinion, it would be trading around $1,000 now, if it’s properly valued, priced and IPO –ed. ( Like around $80 or $90 a share with limited float to create more demand) . We don’t have to look any further than Linkedin (LNKD) for a recent successful IPO.

Having said that, we believe this fixed its technically issues and ready move higher. Here is our quick analysis.

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1. #3 – The stocks corrected as much as 61% during the IPO base formation.
2. #4 – The stocks tried to rebound back in February, but it saw nothing but another correction. However, the trading volume started to dry up during this 2nd leg of the correction.
3. #5 & #6 – The stock finally cleared the heavy resistance area around $32.50- $33.50 in late July. The trading volume also exploded during the breakout.
4. #7 – It appears to be the stock formed a quick handle type shakeout for the last three weeks and cleared that area last Friday (8/23). The buy point would be $39.42

This stock is already part of our long term growth stock pick and rallied around 20% since 07/26/2013. As the market rally is slowly recovering from recent the sell-off, hopefully this stock will lead the next leg of the rally. Let’s see whether the market backs our opinion or not?