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Ep. 2: Tracking A Stock's Life Cycle With Chris Gessel

Investing With IBD

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Facebook's Breakaway Gap

On July 25, 2013, Facebook reported their earnings and they had an EPS surprise of 31.6%. And so what a breakaway gap is it's a breakout, but the stock is also gapping up. This wasn't just a little breakaway gap; this was a massive, huge, massive breakaway gap. The volume on that day, above average, against a 50-day moving average volume, it was up 749%. Now, any normal person who's not using charts or not using bases to buy, would have thought that you were crazy to try the stock at that time.

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