The market is currently valuing Facebook at about 56 times average earnings forecasts for 2014. With valuations like this, there is plenty of scope for a sharp correction if anything happens to change sentiment either for the stock itself or for the broader market.

With this in mind,  current Facebook Chart Divergence  puts it on my list of stocks to watch. While last week’s peak was an all-time high, the RSI is beginning to make lower highs. Any weakness from here that led to a break below the 20 day moving average and support below that would complete a double top formation.

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