Cramer: Charts predict Facebook headed much higher

Chartist says Facebook goes higher
Chartist says Facebook goes higher   

Every week Jim Cramer reaches out to his top technicians to get an inside read on the future of heavyweight stocks and the direction that their charts indicate. And while this is a wildly popular segment on "Mad Money," Cramer knows that sometimes it pays to hear the information straight from the source.

That is why Cramer kicked off his very own Chart Week, so he could sit down with famous chartists in person to talk about their favorite stocks. It is much like the Discovery Channel's "Shark Week"—only with the potential to be a lot more lucrative.

First up was Robert Moreno, a technician and colleague of Cramer's at RealMoney.com, as well as the publisher of RightViewTrading.com and a big fan of Facebook's stock.

Rob Moreno on Mad Money
Scott Mlyn | CNBC
Rob Moreno on Mad Money

Facebook hit a 52-week high on Monday, closing at $90. Thus, Moreno examined the charts to see if the high was a fluke or a signal for a long-term climb. Looking at the weekly chart of Facebook, Moreno pointed out that the stock has been in a primary uptrend since January 2013.

In late 2014, the stock then began to have a horizontal consolidation, and it attempted to break above that level in March and April of this year, but it failed. Many investors were scared at this point and felt it was a breakdown, but Moreno knew it was a breakthrough instead, because it held at the 200-day moving average.

So, now that the stock has hit an all-time high on Monday, where does Moreno see Facebook headed?

Moreno said it all comes down to the interesting activity that he saw in the daily chart, as it recently formed a flag pattern.

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"The target projection of this pattern is off the height of the flag pole, and that is where it measures from," Moreno explained.

Ultimately, he projected that Facebook will go as high as $95 in the short term. And even without a glorious flag pattern, the floor of support is so strong that Moreno expects the long-term upward trajectory to stay intact.

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