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Does Facebook have more competition than it thinks?

Facebook may be the world's largest social network site but should they be worried about scrappy little upstarts like Ello?

With 829 million daily active users – roughly 11 percent of the world's population, Facebook feels it has little to fear from one of the latest entries into the social media space, Ello.com. The Vermont-based start-up is being hailed as a sort of anti-Facebook, touting its ad-free platform.

Yet despite some press attention, Ello barely registers with Facebook's top brass. When asked about Ello recently, Facebook chief operating officer Sheryl Sandberg said she never heard of it.

But should Facebook, whose value more than doubled to $201 billion since going public two years ago, take tiny rivals like Ello and others more seriously?

(Read; Now you can use a fake name on Facebook)

"Ello is not a threat to Facebook," said David Seaburg, head of equity sales trading at Cowen and Company. "The thought of Ello posing a threat to Facebook is ridiculous. This is a specialty offering that is not designed to be in the mainstream."

Seaburg likes Facebook's stock and believes the company can fend off challenges because of its internal infrastructure. "Facebook is a very well-run business," he said. "They have many levers to pull [in] their core business to maintain the growth that they're currently at…. Facebook is the gold standard."

From the technicals perspective, the charts back up Seaburg's enthusiasm for Facebook, according to Jason Rotman, president of Lido Isle Advisors. "Technically it looks very strong," he said.

Rotman is particularly encouraged by what he sees as an upward-sloping supportive trend line in place for just about a year on Facebook's chart. "What traders look at and what even investors look at is the fact that Facebook is making higher lows," he explained. "Each time there's a selloff, it ends at a higher point than the previous selloff. That is a bullish technical formation."

(See: CNBC's Social Media coverage)

But on the other side, Rotman also sees an upward-sloping resistance line on the chart. And, he also wouldn't be surprised if the stock sold off along with the broader market but that could create another buying opportunity.

"It's a screaming buy if it gets below $70," Rotman said. "Technically, there is an end-of year target at $82. That's where the upper trendline resistance comes in. I think it's going to easily get there."

To see the full discussion on Facebook, with Seaburg on the fundamentals and Rotman on the technicals, watch the above video.

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